MVT survey reveals 4k grassroots job losses in UK

UK grassroots venues are closing at a rate of more than one a week, resulting in 4,000 job losses across the sector over the past year, according to the Music Venue Trust’s (MVT) latest annual survey.

The charity reports that 78 premises have permanently closed over the last 12 months, with dozens more premises also no longer operating as a grassroots music venue.

Further knock-on effects from the 15.7% decline in live music spaces have included the loss of 14,250 events, 193,230 performance opportunities, £9 million (€10.35m) of musician income and £59m of economic activity.

In response to the alarming findings, the MVT, which represents almost 900 UK grassroots music venues (GMVs), is calling on the UK government to extend business rate relief for its members.

“The current business rates system is anachronistic, inconsistent, and outdated and fails to meet the principles of good tax design,” says MVT CEO Mark Davyd. “The UK government is currently conducting a consultation on wider reforms but the solutions they have so far proposed are in no way radical enough to redress fundamental inequalities that will lead to many more venue closures.”

“The government could throw a vital lifeline to GMVs already holding onto survival by their fingertips”

Sunak created a 50% rate relief specific to GMVs in January 2020 following lobbying from the MVT and others. It was subsequently zero rated for the entire retail, hospitality, and leisure sector as a result of the pandemic, with further concessions extended across these sectors in 2021, 2022 and 2023.

While the sector currently enjoys a 75% business rate relief as a result, it was recently announced that this is to end in April 2024, which the MVT calculates would impose an additional £15m of costs on the circuit.

“We are already losing GMVs at a catastrophic rate, which has had a knock-on effect of 4,000 jobs losses, the removal of 14,250 live music events and 193,230 performance opportunities for musicians, £9m of musician income and £59m of economic activity,” adds Davyd. “By extending business rates relief past next April the government could throw a vital lifeline to GMVs already holding onto survival by their fingertips.”

The main causes put forward for the permanent closures include the economic and logistical impacts of the pandemic; debt and bankruptcy resulting from energy prices, business rates, supply costs, or rent; financially unviable trading conditions; noise abatement orders and unachievable licence renewal terms.

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