Sector Devasted as Tax and Price Rises force Job Losses
The Music Venue Trust have now published their annual report for 2025, providing a damning indictment of the state of the live music sector. Published January 2026, the report features many statistic and recordings, giving readers the most accurate possible representation of the sector as a whole. Facts include average profits, job losses, ticket price increases and venue closures – as well as a wide range of other statistics.
The report is available to read and download here. At NDML we breakdown the main learnings from the report, and we also note 4 key trends spotted by the researchers.
Music Venue Trust – Annual Report 2025, published Jan 2026
We are also offering venue operators to have their own say below. Answer our poll to let us know: How do you expect your nightlife venue to fair in 2026?
What does the Music Venue Trust Annual Report for 2025 tell us?
Most venues are struggling to make a profit
The majority of live music venues made no profit in 2025. A reported 53% of grassroots music venues reported no profit and the average profit margin sat at a low of just 2.5%. The recent increase in costs and taxation, as well as the expenditure on delivering live music is overwhelming businesses.
A mere 32% of income came from ticket sales, whereas 68% came from non-ticket revenue. This is as more and more music venue premises are being utilised for social and commercial purposes. Alternative operations such as education classes, charities, eco-initiatives and community kitchens are on the rise. The largest change was music venues building being repurposed for restaurant and bar openings – this trend went from 34% in 2024 to 65.5% in 2025.
Ticket Prices are increasing
The average ticket price rose, but only marginally. In 2024, the average ticket price was £11.48, yet in 2025 it sits at £11.56.
This past year, ticket pricing made headline news. With scalpers and mass buying publicly criticised, ticket sellers such as Ticketmaster were outed for their flexible pricing initiatives and long online queues. The MVT argues that the increase was always going to happen due to inflation, but the increase only being slight shows that operators are prioritising affordability and attendance.
Music venues premises improvements are being invested in
Operators are spending thousands on improvements to their venues. Audience experiences are being prioritised with grassroots venues reportedly spending over £3000 on building and equipment improvements. Sound and lighting were commonly upgraded, demonstrating the continued recovery of the sector and an intention to continue providing cutting-edge experiences for customers.
Attendance to Ticketed Event Rising
Attendance saw an increase of 13% from 2025 to 2024. The number of events hosted specifically by grassroots venues rose by 10%. This follows a recent decline in attendance seen in 2023.
Ticketed live music events makes up 55% of all events ran by these businesses. These statistics prove that the enthusiasm for live music is still strong – and poor ticket sales are not the reason why businesses are losing profits. Costs increase are hampering growth, preventing venues from their continued diversification of varied artists and artforms. Per night, audience attendance is the highest recorded by the MVT – while the ability to put on more shows is being hamstrung.
4 trends of 2025 impacting Nightlife Venues, spotted by the MVT Annual Report
There are numerous issues which are having a financial ramifications for music venues and nightclubs. The MVT annual report lists the legislative and environmental changes that took hold in 2025. At NDML, we surmise the 4 trends below:
Employment
The rise in national insurance contributions has severely affected employers, none more so than nightlife and hospitality operators. The change has created £15million in additional tax just across UK grassroots venues. This adversely affected employment, as staff numbers did not grow in 2024, and were severely reduced in 2025.
Employment fell by 20% in the sector. The amount of people working in the music venue sector is now under 25,000 – it was above 30,000 at the start of 2024.
Cutting staff was unavoidable for operators. With reduced relief and increased payroll taxation, maintain the same headcount was impossible for many operators, risking closure.
Touring
The largest cities have the largest venues, and a larger density of venues. Over 2025, the touring circuit contracted – with certain cities are clearly favoured by promoters. Rather than a network, touring routes go from cluster to cluster. The resulting trend is that smaller cities and towns miss out on nationwide tours, and the majority of the UK’s population do not have local access to top artists.
Small Local rural or suburban venues are struggling. Local promoters lack the resource to fill the gaps. Fewer show mean less bar sales and reduced employment.
Taxation
In 2025, venues paid more in tax than any other time in history. Alongside the employer national insurance increase, business rates relief was reduced in from 75% to 40% in April 2025. This raised the tax burden by £7 million.
VAT on tickets remained at 20%, despite the cost pressures. Small venues, earning under £500,000, were more severely affected. The Music venue trust posits that small venues would benefit by being treated as cultural institutions, rather than commercial hospitality businesses.
Ownership
Not-for-profit operation and community ownership continues to grow. By the end of 2025, 38% of grassroots venues will be not-for-profit, that’s 5% more than 2024. This sounds a cultural movement to protect venues and safeguard them within the community.
This revolutionary business plan benefits venues by increasing access to grant funding and lowers borrowing costs. The annual report sites the Music Venue Properties initiative which continues to expand through 2025.
What’s the solution to live music venue financial difficulties?
Numerous financial challenges are causing hospitality closures and staffing cuts. The sector is struggling and relief is diminishing.
The solution, posited by the Music Venues Trust, is a £1 levy on tickets for all arena and stadium shows with more than 5,000 capacity. They expect this initiative to raise up to £25m annually, to be used for grassroots venues facing closure.
Another solution is changing the status of specific music venues from commercial hospitality businesses to cultural institutions. This would allow these organisation to benefit from government grants and tax benefits. This change is supported by The Nightlife Revolution, pioneered for both nightclubs and live music venues.
Ultimately, the sector needs legislative support. Tax and business rates are severely affecting profit margins, and will need to be cut for the survival of the sector. A temporary VAT reduction on tickets is also widely supported.
But these sweeping changes do not look likely. Nightclubs and music venues need to reassess their business plans and balance sheets. A necessary expense is insurance, but with a dedicated broker such as NDML, businesses are guaranteed the best cover, in both rates and terms.
Ask yourself, would your businesses survive a costly insurance claim? Contact NDML for a confidential review of your policy.
Answer our Poll: How do you expect your nightlife venue to fair in 2026?
This fact finding exercise will be anonymised, and the information provided will help to inform us and support the MVT’s report.