Music Venue Trust Responds to Treasury’s Business Rates Defense
The Music Venue Trust (MVT) has expressed strong discontent with the Treasury’s defense of the significant rise in business rates impacting venues across the UK, set to take effect in 2026. MVT has urged the government to cease sharing what they deem ‘irrelevant statements’ and to urgently address the issue.
Recent revelations have indicated that prominent venues, including The O2 in London and Wembley SSE Arena, are slated for some of the largest increases in business rates nationwide. In fact, venues are reportedly facing annual rate bills that could more than double. For instance, Wembley Arena’s business rates are projected to soar by 300 percent, while The O2 will see an increase of £1.85 million.
This sharp rise is particularly concerning as the previous valuations were based on a period during COVID-19 when demand for live music was significantly lower. The new figures reflect the anticipated operating conditions for 2024, raising alarms among venue operators already grappling with rising costs.
MVT’s CEO Mark Davyd has been vocal about the challenges facing UK venues, noting that many are struggling to achieve profitability. In response to the situation, MVT has allied with a variety of organizations, including LIVE Music and the Musicians’ Union, to pen an open letter to Prime Minister Keir Starmer. The letter outlines the potential consequences of the rate hikes, warning that hundreds of grassroots music venues could close in the coming years, ticket prices may rise for consumers, and thousands of jobs could be lost.
The letter proposes an immediate 40 percent Business Rates Relief for venues, akin to the relief granted to film studios until 2034, as well as a fundamental reform of the valuation system. This call for change comes as the MVT stresses that the Treasury’s response to the situation has been inadequate.
A spokesperson for HM Treasury has stated that they are implementing measures to cap the impact of the rate increases on arenas, including a £4.3 billion support package. They also mentioned efforts to relax temporary admission rules for equipment used in live shows and a £10 million investment aimed at supporting venues and live music.
Despite these reassurances, MVT has criticized the Treasury’s response as insufficient, emphasizing that the new Rateable Values are a serious issue that needs to be addressed. Davyd pointed out that while corporate tax rates may benefit large businesses, they do not alleviate the financial strain on grassroots music venues, where over half are currently operating at a loss.
Davyd highlighted alarming statistics, warning that 91 grassroots music venues in the UK are at risk of closure between April 2026 and April 2029 unless the Treasury adopts a more favorable approach. Some venues are facing total tax liabilities that have increased by over 400 percent.
In addition to the business rate hikes, the UK government has previously indicated its support for initiatives aimed at bolstering the live music sector. This includes measures to regulate ticket resale prices and a proposed £1 ticket levy to fund grassroots music spaces.
As the industry continues to navigate these challenges, the MVT remains committed to advocating for the sustainability of live music venues, which are vital to the music ecosystem. For more information on the challenges facing the music industry, visit RIAA.
The ongoing discussions and developments surrounding business rates will be crucial for the future of live music in the UK and the venues that support it.