A report by the Music Venue Trust (MVT) indicates that over half (53%) of the UK's grassroots music venues did not make a profit last year. In 2025, 30 live music venues closed, resulting in a loss of 6,000 jobs, which constitutes almost 20% of the sector's workforce. Notable closures included Liverpool's Zanzibar and Leicester's The Shed.
Despite these financial difficulties, attendance at grassroots gigs increased by 13%, with 21 million fans attending shows in 2025. Average ticket prices saw a marginal rise of eight pence, from £11.48 to £11.56. The rate of venue decline also slowed to 1.2%, the lowest level since 2018. MVT CEO Mark Davyd stated that this represents "definite progress" compared to previous years since the COVID-19 pandemic.
In 2025, there were 801 grassroots music venues, a decrease from 810 the previous year, with new venues and returning ones offsetting some closures. Owners cited financial pressures as the primary reason for closures. Increased National Insurance payments added approximately £15 million to the sector's wage bill, according to MVT. The average profit for a grassroots venue was 2.5%, a figure MVT described as "critically low," noting that many venues consider this a profit even without owners being paid.
Kathryn McShane, director of Black Box in Belfast, observed that the cost of living crisis significantly impacted venues. She explained that selling £25 tickets becomes more difficult when consumers face other financial considerations, and the rising cost of arena shows consumes a substantial portion of music fans' "cultural spend." McShane noted that increasing travel costs, particularly for artists needing flights or boats to reach venues like Black Box in Northern Ireland, are making touring unsustainable for many.
To address financial shortfalls, Black Box has expanded its operations to include daytime corporate events, workshops, book readings, and community group activities. McShane suggested that larger concert venues could provide support to their local affiliates, drawing a parallel to the way large sports teams contribute to their communities.