Autumn Budget delivers blow for grassroots venues
Measures announced as part of the first Budget under the UK’s new Labour government have put more than 350 grassroots venues (GMVs) at risk of immediate closure, according to the Music Venue Trust (MVT).
Chancellor Rachel Reeves delivered her Autumn Budget in the House of Commons today (30 October) – almost four months on from Labour’s landslide general election victory.
Reeves announced £40 billion (€48bn) of tax rises, with business rates relief set to be cut from 75% to 40% from 1 April next year ahead of a planned overhaul of the system in 2026.
MVT CEO Mark Davyd has shared his disappointment the move, which he says was made in spite of extensive briefings about the negative knock-on effects on the scene, pointing out that 43% of GMVs in the UK made a loss last year.
“The immediate impact is to create a demand for £7 million in additional premises taxes from a sector that, in 2023, returned an entire gross profit across all 830 such venues in the UK of just £2.9 million,” says Davyd. “Over 350 grassroots music venues are now placed at immediate risk of closure, representing the potential loss of more than 12,000 jobs, over £250 million in economic activity and the loss of over 75,000 live music events.”
“Changes in April 2026… will be of no use for the hundreds of music venues that are now likely to be lost before this challenge is finally met”
He continues: “Simultaneously with announcing this new tax demand, the government acknowledged the faults and inequities inherent in the business rate system, promising to deliver a new lower rate of taxes on physical, hospitality and leisure premises in April 2026.
“The challenges around business rates and grassroots music venues have been known and accepted for over a decade. Changes in April 2026 are to be welcomed, but will be of no use for the hundreds of music venues that are now likely to be lost before this challenge is finally met with a full, long overdue reform.”
Davyd puts forward three possible solutions, starting off by urging the government to have a rethink and restore the 75% rate relief for GMVs. Alternatively, he argues it could create an emergency fund of up to £7m (€8.4m) that the most under-threat venues could access to meet the new tax demand.
Lastly, his third suggestion is that every GMV in the country install a temporary business rate levy of 50p (€0.60) applied to every ticket sold and used directly to meet the £7m demand until the new business rate system is installed.
“Unless the government is willing to think again, it unfortunately may be the only possible option to stop a complete collapse of live music in our communities,” he adds.
“The decision to reduce this relief will increase costs on grassroots music venues already struggling to keep their doors open”
LIVE CEO Jon Collins was less critical of Reeves’ announcement, saying the trade body recognised the chancellor had “tough choices” to make.
“We welcome the retention of business rates relief but the decision to reduce this relief will increase costs on grassroots music venues already struggling to keep their doors open,” he adds. “The live music sector is a key contributor to economic growth, generating over £6 billion in 2023, and creating positive social, cultural, and economic impact across every city, town and village in the UK. It is critical that the next Budget focuses on growth and enables sectors like live music to achieve their full potential.”
While the chancellor extended business rates relief for night-time economy businesses by an additional two years at a reduced 40%, halving the relief, the Night-Time Industries Association (NTIA) says the benefit is negated by a series of tax hikes that threaten the sector’s financial stability.
“We are in one of the toughest trading environments the UK has seen in decades for our sector, fraught with a legacy of challenges from previous crises,” says NTIA CEO Michael Kill. “While the chancellor has listened to our plight, the extended business rates relief is a minor concession amongst the array of tax increases and fiscal shifts, which will take some time to evaluate and consider regarding sector impacts. However, in simple terms, it is still double the contribution of the current business rates.
“This relief will be immediately undercut by increased NIC Employer contributions and thresholds with increased individual employer contributions to businesses, net increase in alcohol duty and overarching workforce increases, although rightly intended to support the workforce, will have severe repercussions for already struggling businesses across the sector. This shows an acknowledgement of core businesses within nightlife but lacks consideration for the broader industry outside of bricks and mortar businesses and the vital and diverse role our night-time economy plays within our communities and the UK’s culture and economy.”
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