Letter to the Prime Minister urging a review of the business rates changes in the November 2025 budget.
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Adrian Ramsay MP co-signed this cross-party letter initiated by the Music Venue Trust.
Keir Starmer MP
Prime Minister
10 Downing Street
London
SW1A 2AA
Xx December 2025
Dear Prime Minister,
We are writing to express our deep concern regarding the decisions on business rates announced in the November 2025 Budget, which will have severe consequences for grassroots music venues (GMVs) across England.
We acknowledge the Government’s intended interventions to ease bills from business rates, including the transitional relief scheme and lower tax multipliers for hospitality. For grassroots music venues, however, these measures merely address symptoms rather than fixing the underlying problem.
Analysis of the incoming 2026 Rateable Values from the Valuation Office Agency (VOA), conducted by Music Venue Trust (MVT), reveals a catastrophic picture. The GMV sector faces a collective £7.2 million increase in its tax base. Hundreds of venues will see rises of over 50% in their Rateable Value, with dozens experiencing increases of 100%, 200%, or more. In some cases, venues that have never previously been liable for business rates will now face bills of thousands of pounds. For venues operating on passion and razor-thin margins, these are not bills - they are closure notices.
Grassroots music venues are at the heart of communities and our constituencies. They provide jobs, entertainment, access to local culture, and vital platforms for emerging artists. Yet the VOA’s methodology values them solely as commercial property, blind to their cultural role, community function, and contribution as the research and development engine of the UK’s world-leading music industry.
This creates a direct contradiction: while the Government’s Creative Industries Sector Plan seeks to drive growth through culture, the VOA’s approach dismantles the very infrastructure on which that plan depends.
The November 2025 Budget compounds this crisis by reducing rate relief from 40% to zero, following the 2024 cut from 75% to 40%. The lower multiplier means a further reduction down to 12% instead of 40%. In 2024, the entire sector of 810 venues returned a gross profit of just £2.5 million yet was asked to absorb £7 million in additional premises taxes. Transitional relief cannot bridge this gap, nor that created by higher rateable values. Data from MVT shows that a venue with a rateable value of £30,000 will see its bill rise from £8,000 under 40% relief in 2025 to £11,000 with no relief in 2026, even on the lowest multiplier.
MVT projects that around 600 GMVs in England face an average 28% increase in business rates, with some reporting rises of 91%. Based on 2025 data, this will directly close 80–120 venues, place another 120–180 at risk, and lead to 200–300 closures over the next four to five years.
Of the 801 GMVs identified in 2025, 38.1% were registered as not for-profit entities, a 15.4% increase on 2024. Despite this number, very few venues receive discretionary rate relief due to dwindling local authority resources. MVT has repeatedly explored multiple avenues with local authorities to aid venues with business rates but, like transitional rate relief, it is merely a sticking plaster on a much deeper wound, and one that is now very rarely a viable option.
HMRC’s fiscal rules further exacerbate the crisis, as operators who can foresee future insolvency risk being deemed to trade recklessly. Once closed, these venues will not be replaced.
The fundamental flaw remains: the system is designed to value property, not cultural purpose. As long as venues are treated as speculative assets rather than cultural utilities, relief measures, however welcome, amount only to temporary stays of execution.
We therefore support the Music Venue Trust’s call for the immediate implementation of an emergency 40% rate relief for GMVs, akin to the relief granted to film studios in 2034, recognising GMVs as critical creative infrastructure.
Reform to date has not gone far enough and the effect on this sector is chilling. Events in these local GMVs sustain high streets across the UK by bringing visitors willing to spend money in hotels, bars, restaurants, shops, and taxis and other businesses.
Without urgent and thoughtful policy solutions, the outcome will be the continued closure of GMVs, with devastating consequences for communities, culture, and the UK’s music industry.
We urge you to act swiftly to safeguard this vital part of our national cultural infrastructure by introducing emergency rate relief for grassroots music venues and establishing a rapid inquiry into the valuation methods for event spaces.
Kind regards
Adrian Ramsay MP co-signed this cross-party letter initiated by the Music Venue Trust.
