“Hundreds of grassroots venues will close and arena gig ticket prices will increase” warn UK live music sector in open letter to government over business rates

The UK live music sector has reached out to the government following news that arenas will face sharp rises in business rates in 2026, and warned that the move will put grassroots venues under threat and see ticket prices increase.

It was recently revealed that arenas including the O2, Co-op Live, The SSE Arena Wembley and more will be seeing their business rates bill rising by more than double going into 2026 – with the latter set to increase by 300 per cent.

The spike in the property taxes required comes as previous rates were based on conditions in April 2021, when the COVID-19 pandemic led to little demand for live music. The new rates will be based on operating conditions seen in 2024.

The increased financial strain will hit at a time when venue operators are already struggling to turn a strong profit in many cases – facing rising costs, economic uncertainty and more. In light of the new rates, Music Venue Trust (MVT) CEO Mark Davyd outlined how the changes will likely lead to ticket prices rising, and artists being less willing to perform in the UK.

Now, MVT have joined up with LIVE Music Industry Venues and Entertainment, National Arenas Associate, The Concert Promoters Association, Musician’s Union, the FAC, British Association of Concert Halls and more, to sign an open letter to Prime Minister Keir Starmer, warning of the consequences that could be on the way.

In the letter, which you can read in full here, the organisations request that the Prime Minister “review the devastating, unintended consequences for live venues” caused by the new business rates. They also add that the rates are “disproportionate, inappropriate, and unjustified”, and “will undermine many of this Government’s own priorities”.

It then runs though how, although there is transitional relief meaning that increases for these large venues will be capped at 30 per cent between 2026 and 2027, the rise in taxes “completely outweighs any benefits” put forward.

The crowd for Nemzzz. Credit: Derek Bremner for NME

Outlining the “chilling” effects that they predict, the organisations shared that they expect that “hundreds of grassroots music venues will close in the coming years as revaluations drive costs up” – preventing a new generation of talent from performing live and working their way up to arena level.

The bodies also also shared that ticket prices will likely increase, with the “dramatic rise in arena’s tax costs will likely trickle through to” the consumer, therefore “undermining the Government’s own efforts to combat the cost-of-living crisis”.

They then added that the potential closure of arenas due to the high business rates will lead to thousands of jobs being lost, and highlighted that the move will “undermine [the government’s] own Industrial Strategy and Creative Sector Plan which committed to reducing barriers to growth for live events.”

“Events in our venues sustain high streets across the UK by bringing visitors willing to spend money in hotels, bars, restaurants, shops, and taxis and other businesses. These changes will reduce the high-street spending that supports local businesses and sustains jobs,” the letter continued.

As well as outlining the potentially devastating impact that the new rate could have on the UK live music sector, the organisations put forward some changes that they think will help alleviate the pressures put on the venues.

These include an “immediate 40 per cent Business Rates Relief for our venues”, similar to that that film studios have been granted until 2034 as they are “critical creative infrastructure”, and a “fundamental reform of the valuation system” which would look into the valuation methods for event spaces.

At the end of the letter, the live music sector also request “an urgent industry roundtable with Ministers and officials”, where they would discuss ways that the government can help support the future of the UK’s live venues.

Emma Bownes Senior Vice President at AEG Europe, and Mark Davyd and Jane Beese of Music Venue Trust CREDIT:
@photoswotitook

NME has reached out to spokespeople at the UK government both about the increase in business rates, and the concerns raised in the open letter about potentially negative consequences.

As highlighted in the open letter, high costs hitting venues in 2026 are announced following the Labour government saying at the start of the year that they were wanting to support the live music scene by cracking down on high prices for re-sale tickets and looking into the use of ‘dynamic pricing’.

After facing pressure from Radiohead, Sam Fender, Dua Lipa and more to make concrete changes, MPs announced that it will now be illegal to re-sell tickets for live events above their original cost, saving fans £112million per year.

The price rises are also announced as live music venues across the country have repeatedly come under threat in recent years due to issues including rising costs. 2023, for example,  proved to be the worst year on record, with 125 grassroots music venues shutting their doors – the equivalent of two per week.

In an attempt to help support music spaces, there has been a push for the UK’s arena and stadiums to introduce a £1 ticket levy, which sees £1 from every ticket sold being invested into grassroots spaces. The model is similar to that seen in the Premier League of football, and is already in use in several countries across Europe.

Jarvis Cocker performs with Pulp at Glastonbury 2025. Credit: Andy Ford for NME

Huge names including Coldplay, Enter Shikari, Katy Perry, and Sam Fender have all adopted a levy of their own in each of their respective tours and, by the end of 2024, the UK government shared its backing for the proposed ticket levy to be introduced into law.

Figures shared earlier this year also showed that 93 per cent of fans were all in favour of the levy.

Efforts from artists including Pulp and Mumford & Sons have so far meant that £500,000 has been raised for grassroots music venues, and earlier this week The O2 revealed it would be helping out by making a donation to the MVT every time a new artist headlines the arena.

You can view the original article HERE.