Over a third of UK grassroots music venues are loss-making, charity finds | Music

Over a third of UK grassroots music venues are loss-making, according to the annual report of the sector charity Music Venues Trust (MVT).

Thirty-eight per cent of the 835 venues, most of them small and entirely independent, made a loss, with cost of rent a particular pressure point: venues that rent their premises saw those costs increase by an average of 37.5% compared with 2022.

There were 960 grassroots music venues in 2022, but that number dropped by 125 last year, with around half of those closing altogether and the other half ceasing live music provision. High-profile examples include Moles, the Bath venue that once hosted the likes of Radiohead and Ed Sheeran on their path to success. The cost of living crisis in recent years was blamed for that closure, with co-owner Tom Maddicott citing “massively increased costs of stock, utilities and rent compounded by our customers also feeling the impact of the crisis”.

The situation for grassroots venues is especially tough in less well-populated areas, with venues in towns of under 200,000 people making a loss of 2.5% on average. Average turnover across the grassroots sector is up by 15%, but average expenditure is up by almost the same amount, meaning that the profit margin in running venues such as these – seen by many as the lifeblood of the UK music scene – is an average 0.5%.

Grassroots venues are classed by the MVT as those that have music as their “raison d’être”, that “take risks” with their cultural programme and “programme artists that deserve audiences, with no expectation of direct financial reward” – differing from more purely profit-driven music venues that host mostly already-established acts. Some 28,223 people are employed across grassroots venues, a drop from 30,720 in 2022.

The charity’s chief executive Mark Davyd called for UK political parties to make pledges for the sector as part of their general election campaigning, and for larger venue groups and concert promoters to contribute to what he describes as “research and development carried out on their behalf”: the hosting and nurture of up-and-coming artists who later become major box office draws. “It’s time to stop the excuses – we can no longer accept complacency from those in a position to help prevent the annihilation of our sector,” Dayvd said.

A June 2023 report by PricewaterhouseCoopers predicted growth across the entire UK live music sector of 7.4% each year until 2027, and that UK live music market would be £1.63bn in 2023, rising from £1.54bn from 2019.

UK Music found the sector was boosted by 14.4m music tourists in 2022 (defined as someone who has travelled at least three times the average commute for their region), including 1.1 million from abroad, who spent £6.6bn overall (including on travel, accommodation and other expenditure outside of ticketing and venues).

One idea to support the sector is a levy added to all UK gig tickets that will be redirected to grassroots venues. A band promoting the approach are chart-topping rockers Enter Shikari, who donated £1 per ticket from their upcoming arena tour to distribute to smaller venues, via MVT.

When asked about plans for sector support, Conservative MP and former culture secretary John Whittingdale said in November 2023: “We have no plans to impose a ticket levy. Industry-led discussions are ongoing regarding increased support for grassroots music venues from larger events and venues.” He highlighted direct support from the government’s Emergency Grassroots Music Venues Fund during the pandemic, and, announced earlier in November, a extra £5m given to Arts Council England for a Supporting Grassroots Music fund.

As well as supporting at-risk venues with funding, MVT has recently branched into a venue ownership strategy itself. The Music Venue Properties initiative arranges community and crowdfunded investment to secure the long-term viability of venues by buying the freeholds on their buildings. The first venue bought under the scheme was The Snug in Atherton, in October 2023. Community shares have raised £1m for the overall scheme so far, topped up with £500,000 from Arts Council England, loans of £650,000 including from the Arts and Culture Impact fund and donations from music industry companies.

Over a third of UK grassroots music venues are loss-making, according to the annual report of the sector charity Music Venues Trust (MVT).

Thirty-eight per cent of the 835 venues, most of them small and entirely independent, made a loss, with cost of rent a particular pressure point: venues that rent their premises saw those costs increase by an average of 37.5% compared with 2022.

There were 960 grassroots music venues in 2022, but that number dropped by 125 last year, with around half of those closing altogether and the other half ceasing live music provision. High-profile examples include Moles, the Bath venue that once hosted the likes of Radiohead and Ed Sheeran on their path to success. The cost of living crisis in recent years was blamed for that closure, with co-owner Tom Maddicott citing “massively increased costs of stock, utilities and rent compounded by our customers also feeling the impact of the crisis”.

The situation for grassroots venues is especially tough in less well-populated areas, with venues in towns of under 200,000 people making a loss of 2.5% on average. Average turnover across the grassroots sector is up by 15%, but average expenditure is up by almost the same amount, meaning that the profit margin in running venues such as these – seen by many as the lifeblood of the UK music scene – is an average 0.5%.

Grassroots venues are classed by the MVT as those that have music as their “raison d’être”, that “take risks” with their cultural programme and “programme artists that deserve audiences, with no expectation of direct financial reward” – differing from more purely profit-driven music venues that host mostly already-established acts. Some 28,223 people are employed across grassroots venues, a drop from 30,720 in 2022.

The charity’s chief executive Mark Davyd called for UK political parties to make pledges for the sector as part of their general election campaigning, and for larger venue groups and concert promoters to contribute to what he describes as “research and development carried out on their behalf”: the hosting and nurture of up-and-coming artists who later become major box office draws. “It’s time to stop the excuses – we can no longer accept complacency from those in a position to help prevent the annihilation of our sector,” Dayvd said.

A June 2023 report by PricewaterhouseCoopers predicted growth across the entire UK live music sector of 7.4% each year until 2027, and that UK live music market would be £1.63bn in 2023, rising from £1.54bn from 2019.

UK Music found the sector was boosted by 14.4m music tourists in 2022 (defined as someone who has travelled at least three times the average commute for their region), including 1.1 million from abroad, who spent £6.6bn overall (including on travel, accommodation and other expenditure outside of ticketing and venues).

One idea to support the sector is a levy added to all UK gig tickets that will be redirected to grassroots venues. A band promoting the approach are chart-topping rockers Enter Shikari, who donated £1 per ticket from their upcoming arena tour to distribute to smaller venues, via MVT.

When asked about plans for sector support, Conservative MP and former culture secretary John Whittingdale said in November 2023: “We have no plans to impose a ticket levy. Industry-led discussions are ongoing regarding increased support for grassroots music venues from larger events and venues.” He highlighted direct support from the government’s Emergency Grassroots Music Venues Fund during the pandemic, and, announced earlier in November, a extra £5m given to Arts Council England for a Supporting Grassroots Music fund.

As well as supporting at-risk venues with funding, MVT has recently branched into a venue ownership strategy itself. The Music Venue Properties initiative arranges community and crowdfunded investment to secure the long-term viability of venues by buying the freeholds on their buildings. The first venue bought under the scheme was The Snug in Atherton, in October 2023. Community shares have raised £1m for the overall scheme so far, topped up with £500,000 from Arts Council England, loans of £650,000 including from the Arts and Culture Impact fund and donations from music industry companies.