While the UK live music sector boasts an impressive £6.1 billion economic impact in 2023, a growing disparity threatens the foundation of the industry’s ecosystem. Large festivals and established artists continue to thrive, while independent venues and emerging performers face mounting financial pressures amid rising operational costs and reduced bookings.
The cost-of-living crisis has greatly dampened consumer spending on live entertainment, with data showing that concert-goers now attend fewer gigs despite overall attendance growth in the year ending May 2025. This paradoxical trend highlights how market growth disproportionately benefits larger, established events while smaller venues face closure risks.
Market growth masks a troubling reality: as megaevents thrive, grassroots venues struggle for survival in today’s economic climate.
In response to these challenges, a new non-profit initiative announced yesterday will launch a nationwide festival specifically designed to support grassroots venues. The event, scheduled for September 2025, will operate with a unique financial model where 75% of proceeds directly benefit participating independent venues. Musicians participating in the festival can also explore sync deals to further boost their income while supporting these crucial venues.
“This festival represents a critical intervention at a time when our smallest venues, which nurture tomorrow’s headliners, are fighting for survival,” said Mandy Reynolds, director of the Live Trust, which will administer the funds generated by the event.
The initiative aligns with broader industry policy goals championed by the UK live-industry body Live, which continues advocating for VAT revisions and business rate reforms to ease financial burdens on struggling venues. The upcoming implementation of Martyn’s Law will add another layer of compliance requirements for venues already facing financial pressures. Emerging artists are encouraged to utilize social media advertising to increase visibility and drive attendance at their shows during these challenging times. Increasing reports of no-shows at concerts are further compounding revenue challenges for these smaller establishments. The proposed £1 levy on stadium and arena tickets, expected to generate approximately £14 million annually for the Live Trust, would provide additional ongoing support.
Music tourism, which contributed a record £10 billion in spending during 2024 with 23.5 million music tourists visiting the UK, demonstrates the sector’s economic importance despite its internal challenges.
The recently launched Music Fans’ Voice survey, commissioned by multiple local authorities in February 2025, aims to provide data-driven insights to further support strategic interventions that promote the sustainability of the entire live music ecosystem, not just its most visible components.
