UK losing grassroots music venue every fortnight as industry demand “action not words”

Last year saw the UK lose one grassroots music venue every two weeks – with nearly half making a loss and 200 remaining in a state of emergency as the country faces a “collapse in touring”.

• READ MORE: UK grassroots venues suffering from “the complete collapse of touring” – here’s how you can help

Presenting the findings of their 2024 annual report at The Houses Of Parliament last week (Thursday January 23), the Music Venue Trust invited new patron Kate Nash along for a performance and to deliver a speech.

The singer-songwriter has been very vocal about the dire conditions that most recording artists find themselves in – taking to OnlyFans for her ‘Butts For Tour Buses’ campaign to protest the industry and raise money for live shows. Speaking in the House Of Commons, she described touring as “one of our favourite things to do, but it is becoming increasingly more difficult to do.”

She explained how despite being “pretty successful” with “thousands and thousands of fans” and being able to “sell out a venue or two”, the practice of planning a tour was now “never exactly what you think and you’re always going to go over budget.

“The way touring works right now is that you’re always over-budget, you go into the red, and fingers crossed you make nothing,” she continued. “You’re hoping you can make it zero and make absolutely fuck-all. It’s a bit of a weird job, really.

“It’s sort of getting to the point where I’m not sure you can call it a job, and it’s a bit more of a passion project. Obviously I’m being a little bit sarcastic and I do earn money from playing shows, but when I go on tour I’m either going into the red or to zero. It’s not a great business model, and the reason that happens to me is because I want to put on a high quality show for my fans.”

• READ MORE: Kate Nash on OnlyFans, The Lottery Winners and saving the music industry: “Major labels are scared – and they should be”

Nash, who has now been a touring artist for 18 years, explained the expenses and outgoings of touring at a reasonable level and the musicians and crew that also require payment. “I’m not willing to cut my band and crew’s wages down,” she admitted. “Just because the industry’s unfair, I’m not going to allow that to trickle down and pay my crew and band badly.

“I pay them fairly, I put on a high quality show, and I bring a backdrop, and I’m in debt. So what I do is save up a nest egg from playing festivals in the summer and I blow it all on touring. I will do that because I fucking love what I do, I’m so passionate about it and I think it’s the best job in the world.”

She added: “But, I’m Kate Nash and if I can’t make it work then how is anyone underneath this level doing it? I know we’re not here to talk about streaming, but I know friends in bands who get a cheque from Spotify for like £38 for millions or thousands and thousands of streams, then they’ve got to split it four ways between the band or maybe their label or management take 20 per cent.”

With a lot less money being made from recorded music than every before due to the impact of streaming, Nash said that many artists could simply not afford to tour – something she described as “a fucking disgrace”. This, combined with grassroots venues having closed at a “disastrous rate” has been reported to have caused “the complete collapse of touring” across the UK.

In 1994, the average length of a tour of grassroots venues around the UK was 22 shows with 28 locations on the primary and secondary circuit. After decades of decline – growing more steep in recent years – the average length of a UK tour is now around 11 shows with only 12 locations on the primary and secondary circuit. As a result, vast areas of the UK that were once hotbeds for live music are now left short. However, stadium and arena shows in major cities are thriving and making record profits.

“People are paying more than ever to go to stadium concerts,” ended Nash. “I paid £300 to go see Beyoncé. I thought it was expensive but she’s amazing and it was an incredible show. People want to pay for music, so what’s up with it? What’s going on?

“I personally value art across all levels,” Nash added. “I don’t only want to see stadium shows. I do like them, but I don’t want them to be the only option. I wanted to take a minute to say this to you as someone who has been directly impacted and whose employees could be directly impacted. I’m responsible for people making a living and paying their rent as well.

“It should be fair. What’s happening doesn’t actually make sense.”

The idea that the upper echelons of the music industry should be paying back into the grassroots and wider ecosystem was backed by the government’s CMS Select committee enquiry last year before a levy on stadium and arena gigs was recommended. A deadline of March has been set for voluntary action before the government step back in and investigate making it mandatory.

However, despite the likes of Coldplay, Sam Fender and Katy Perry making major contributions of their own, the benefits of the levy may not be felt for some time – and the MVT’s report shows that venues are not out of the woods yet.

Last year saw around one venue close every two weeks, with a near 20 per cent increase in “emergency cases” with 200 still on red alert for closure. The report also found that venues investing in sales of food, alcohol, merchandise and more to subsidise the live music they put on due to a number of financial strains – including energy bills – has increased by 440 per cent in recent years, and from £114,814,162 in 2023 to £162,067,095 last year.

As a result, the UK has seen a decrease in the total number of live music shows (down 8.3 per cent since 2023) accompanied by an even steeper decline in ticket revenues (down 13.5 per cent since 2023).

“So many people have said to me: ‘2024, what an amazing year. We’ve had the CMS Select Committee, the levy’s coming on board, isn’t it incredible? We’re all united on this, isn’t it amazing?’” MVT CEO Mark Davyd told the House Of Commons audience. “No, 25 venues closed in 2024. Anybody in this room who thinks that’s good, put your hand up now. That’s one venue every two weeks. We are not acting fast enough on these things, it’s as simple as that.”

However, Davyd admitted that there was “huge will” from across the political spectrum to fix the situation and that, for once, “the music industry is trying to do the right thing”.

“The moves to make the levy happen are astonishing,” he said. “People are coming together and big organisations are finally waking up to the opportunity to support the next wave of talent, the artists and making sure that music happens in our communities.”

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Admitting that it’s far from a guarantee that a voluntary levy would work and that the government may have to step in and make it mandatory, Davyd said that he still “genuinely believed people’s hearts are in it”. However, he told the gathered crowd of venue operators, industry insiders, MPs and Lords that the government still had a long way to go in creating a less hostile environment for music venues to thrive.

“Both sides of the House have been really supportive, but the CMS Select Committee said you should drop VAT on tickets and you didn’t,” he revealed. “It’s the highest VAT in Europe, and virtually the highest sales tax anywhere in the world on cultural ticketing. I can’t think of a single reason why the treasury needs 16.6 per cent of every £10 ticket sold at a grassroots music venue otherwise the finances of the country will fall apart.

“I don’t believe it, I don’t think anybody here believes it, I don’t think Chris [Bryant, MP] or Lisa [Nandy, MP] believe it. We need to get on top of VAT, not just at the bottom end of the ecosystem but we are starting to lose big shows to other places in the world where the tax system is better for big artists.

“Adele played in Munich: 7.2 per cent VAT. Where would you play? 20 per cent VAT or 7.2 per cent? I know what I’m doing; I’m making intelligent decisions on behalf of my artist. It’s worse at the grassroots, but it needs a complete overhaul.”

Davyd also cited that the government had also ignored the CMS Select Committee’s recommendation to eliminate business rates for music venues but instead were increasing them – to the tune of a total £7million tax across the sector, an amount that “they simply don’t have”. On top of that, he said that the government had also ignored recommendations around tackling issues of planning and sound complaints that shut venues down.

“My point is, it doesn’t matter how many years I have to stand here saying the same things over and over again – those things will have to happen otherwise music venues will close,” he added. “Every one that closes is a community that doesn’t have access to music, it’s an artist that may not get found, it’s a big career that we might lose, it’s IP being created that won’t ever be created, it’s huge for our industry.

“Everybody understands that, the MPs and Lords understand that – now we have to have action not words.”

This also comes after the government announced a price cap for the re-sale of touted tickets and an investigation into the practice of dynamic pricing. Visit here for the Music Venue Trust’s full 2024 report.

Today also marks the start of Independent Venue Week 2025. Visit here for more information.

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