UK music industry groups have welcomed new Prime Minister Andy Burnham's announcement of an additional 20% business rates cut for live music venues.
The move will see business rates bills reduced for pubs, clubs and live music venues in England from April 2027, on top of the 15% relief already announced in January.
To target support where it is most needed, the government will not be making the new 20% discount available to the "very largest" music venues, with details to be set out in the Budget.
"For too long, governments have stood by while cherished venues have disappeared from our local high streets. So today I am changing that," said Burnham. "This government will back the businesses that people want to see in their communities. I said I would protect pubs and local high streets – the beating heart of our communities – and that’s what we will do. What we’re announcing today is just the start as we work to bring back hope across the country."
The government said the cut – which will benefit almost 32,000 venues – will cost around £100 million annually, funded in part by a review of rate reliefs for businesses deemed not to make a "positive contribution" to local communities, such as vape shops.
MVT warmly welcomes this announcement from the government, and its recognition that grassroots music venues are essential to our local communities
Mark Davyd, Music Venue Trust
The announcement has been backed by the Music Venue Trust (MVT).
"MVT warmly welcomes this announcement from the government, and its recognition that grassroots music venues are essential to our local communities," said MVT CEO Mark Davyd. "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.
"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."
The government must extend this lifeline to our world class recording studios
Tom Kiehl, UK Music
UK Music chief executive Tom Kiehl also welcomed the "much-needed" support.
"These spaces are essential to the future of our world-leading music industry and serve as vital cultural hubs for communities right across the UK," he said. "We have lost too many venues to soaring business rates and these cuts offer a crucial lifeline to those still struggling to make ends meet."
However, Kiehl added that the government should go further and extend the same support to recording studios. Last October, the Music Producers Guild – supported by UK Music – called on the government to recognise UK recording studios as eligible for reduced business rates under the Retail, Hospitality and Leisure (RHL) scheme.
"The government must extend this lifeline to our world class recording studios," said Kiehl. "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."
Meanwhile, the Night Time Industries Association (NTIA) said the inclusion of clubs was particularly significant for the night-time economy.
“Having worked closely with the new Prime Minister’s team over recent weeks, it is encouraging to see a positive outcome from genuine engagement with the sector," said NTIA CEO Michael Kill. "The inclusion of clubs alongside pubs and live-music venues is particularly important and demonstrates a broader recognition of the vital economic, cultural and social contribution made by the night-time economy.
“The government is undoubtedly making the right noises. We look forward to continuing this constructive dialogue and ensuring these commitments translate into tangible and inclusive support for businesses throughout the night-time economy.”
Music-loving Burnham became Labour leader last week and took charge in Downing Street on Monday (July 20) after succeeding Sir Keir Starmer as PM.
His appointment came less than a week after the UK government unveiled a raft of new measures – covering exports, licensing, music education and funding for artists and teams – as part of a new long-term Music Plan to back the music sector.
