The U.K.’s grassroots music scene has received a major boost as it is set to receive a crucial tax cut from April 2027.
On Thursday (July 23) Andy Burnham, the U.K.’s new prime minister, announced a 20% cut on business rates for pubs, clubs and music venues.
Writing on his X account, Burnham said, “I won’t stand by while these cherished local spaces disappear, replaced by boarded-up windows and ‘For Sale’ signs. They’re the heart of our communities and it’s time we backed them.”
Business rates are charged on most non-domestic properties such as shops, offices, pubs and holiday rental homes. The final sum varies depending on the property’s location and the property estimated market rental value. No. 10 Downing Street, the PM’s office, estimates that the rate cut could save each venue in the region of £1,000 each. The cut will be funded, No. 10 says, by reviewing reliefs for businesses that “do not make a positive contribution to local communities, such as vape shops” (via BBC).
The news has been welcomed by industry stakeholders at a time of peril for grassroots music venues across the U.K. In January, the Music Venue Trust reported that 53% of all grassroots music venues were unable to turn a profit in 2025, and that over 6,000 jobs were lost in the sector, a 19% contraction in the overall workforce.
A number of big names including Harry Styles, Coldplay, Sam Fender and more have all shown support for the scene by voluntarily pledging a portion of ticket proceeds (£1 for every ticket sold) to supporting these spaces. The Labour government has discussed a mandatory ticket levy on arena or stadium shows to help support these spaces.
Burnham assumed the role of prime minister on Monday (July 20) following the resignation of his predecessor Sir Keir Starmer. Burnham most recently held the role of mayor of Greater Manchester and played a key role in bringing the 2026 BRIT Awards to the city, the first time the ceremony had been held outside of London.
Speaking on the announcement, the MVT’s CEO Mark Davyd said, “MVT warmly welcomes this announcement from the government, and its recognition that grassroots music venues are essential to our local communities. The 20% additional reduction on business rates from April 2027 is an encouraging first step in a range of opportunities available to Andy Burnham’s new team to not just protect and secure live music, but begin to restore its central role at the heart of our towns and cities.”
He added, “There remain some issues of implementation of previous reliefs, and we will work with colleagues in government to ensure that all grassroots music venues in England are recognised and eligible. We call on Senedd, Holyrood, and the Northern Ireland Assembly to swiftly confirm they will match this much needed support through Barnett formula consequentials. Venues in Wales, Scotland and Northern Ireland must be confident of a level playing field of economic conditions for touring across the UK. Live music is an ecosystem, and we strongly urge the government to reconsider the limit to the eligibility criteria so that all live music spaces of all sizes qualify, supporting jobs, local economies and communities to access live music.”
After welcoming the move, Tom Kiehl, the CEO of trade body U.K. Music also pushed the government to go further with the rate cut. “The Government must extend this lifeline to our world-class recording studios. We have lost — and continue to lose — far too many of these spaces, without which our industry simply wouldn’t exist. As a lifelong music fan, the Prime Minister knows full well how essential these spaces are, not only for the future prosperity of our industry, but for communities the length and breadth of the country. We urge him to include studios in this policy and offer them the protection they so urgently need and deserve.”
Speaking on BBC 5 Live this morning, celebrity chef, publican and campaigner Tom Kerridge said that the move “doesn’t go far enough but it does show that there is an understanding that hospitality needs a hand, especially smaller venues. It will come as welcome news,” he continues. “But £1,000 on a yearly revenue doesn’t really make a difference. It shows the government is beginning to listen and has an understanding that hospitality is at the core and heart of so many communities.”
