UK Music Industry Faces Showdown: Government Threatens Mandatory Ticket Levy as Grassroots Venues Struggle
Creative Industries Minister Ian Murray calls on the music industry and Live Nation to support grassroots venues through a ticket levy, warning of government intervention if progress isn't made.
Creative Industries Minister Ian Murray has penned a letter to NME, urging the music industry and Live Nation to "step up to help the next generation of talent" by contributing to the arena and stadium ticket levy. Failure to do so, he warns, could result in mandatory government intervention.
Last week saw the Featured Artist Coalition (FAC) launch the new UKAT fund in partnership with Music Managers Forum (MMF) and the Musicians’ Union (MU). The fund's first phase offers £125,000, sourced from LIVE Trust donations as part of voluntary ticket contributions from artists like Sam Fender, Harry Styles, Radiohead, Lily Allen, Enter Shikari, Olivia Dean, Wolf Alice, Biffy Clyro, Ed Sheeran, Take That, The Cure, Kojey Radical, and Foo Fighters.
The LIVE Trust has so far distributed £500,000, with plans to allocate £5 million throughout the year to support artists, venues, promoters, and more, aiming to revitalize the UK's grassroots music scene.
This initiative arrives amidst troubling news: 30 grassroots venues have shuttered between July 2024 and July 2025. Last year, over half of the remaining venues reported no profit, and more than 6,000 jobs were lost. This situation intensifies the pressure to fund touring for artists, preventing an existential threat to the UK's talent pipeline.
Wolf Alice live at Glastonbury 2025, photo by Andy Ford
In support of the proposed £1 stadium gig levy, Ian Murray attended Alex James’ ‘Britpop Classical’ tour at London's Royal Albert Hall alongside Steve Lamacq, a founding trustee of LIVE Trust. The Royal Albert Hall was the first UK arena to voluntarily participate in the scheme last year. Following the event, Murray communicated to NME the necessity for broader support of the levy to unlock the full potential of the UK's grassroots music scene.
Murray stated, "The grassroots industry is the beating heart of our communities. The closure of festivals and venues means fewer opportunities for emerging artists and for fans to experience the joy of live music up close. This cannot continue, and that is why the government has given strong backing to a new £1 voluntary ticket contribution on stadium and area shows, with money reinvested in the grassroots sector."
He continued, "A country with a musical reputation like ours, which can produce global superstars like Olivia Dean, Adele, Ed Sheeran, and Dua Lipa, should also have a thriving grassroots scene and venues within striking distance from all of our doorsteps. As part of our new strategy to support the industry, we are backing artists and live music from the ground up – not just celebrating success at the top, but investing in the pipeline that makes it possible."
The past decade has witnessed a "complete collapse of touring" in the UK, leaving 175 towns and cities labeled as “gig deserts” and 35 million people without access to live music in their local areas.
‘Britpop Classical’. CREDIT: Luke Dyson
In 1994, a typical tour of grassroots venues in the UK comprised 22 shows across 28 locations. Today, that average has plummeted to around 11 shows in just 12 locations.
Murray emphasized the critical role of smaller venues as "the bedrock of our music industry" and incubators for future talent, arguing that the future of stadium gigs depends on their survival.
"Stadium gigs are more popular than ever before, with fans clamouring to see the likes of Oasis and Coldplay put on mesmerising, large-scale live shows," Murray said. "But the music industry must recognise that these moments would not have been possible without the venues that forged those artists into the live acts they are today."
While the government is investing £30 million in a Music Growth Package, offering business rates relief for venues, reforming the licensing system, and banning secondary ticketing and touts, Murray stressed that "the government will only ever be the supporting act" and that the industry needs to do more to reinvest in its own ecosystem.
"We strongly support the industry’s own efforts to take the lead, and in particular the Live Trust’s introduction of a voluntary ticket contribution on stadium and arena shows, with £1 from every ticket sale going towards the grassroots," he stated.
Sam Fender performing at Reading 2023, photo by Andy Ford
The government is giving the industry time to make the voluntary levy work before legislating a mandatory system. While the initial target was 50% participation from stadium and arena gigs by the end of 2025, that goal was not met. A new deadline has been set for June 30, 2026. Music Venue Trust CEO Mark Davyd has pointed the finger at market leader Live Nation, and Murray agrees they need to increase their involvement or risk government intervention.
"It is clear that there is more to do," Murray asserted. "At present, only 30 per cent of tickets for 2026 shows are currently supporting the voluntary ticket contribution. More major venues, tour operators, agents and artists need to step up. In particular, while several major promoters have thrown their unequivocal support behind the Trust, a small number have not."
"Live Nation, given its hugely influential position in the market, could make a major positive impact if it changes its stance. I urge them to reconsider and step up to help the next generation of talent. The government has consistently said that we are prepared to explore legislative options to ensure the sustainability of our world-leading live music industry, and I would reiterate this message to those promoters who can make a real difference."
Murray concluded, "Failure to do so risks undermining our status as a music superpower. Filling arenas in the future depends on supporting artists, promoters, festivals and venues today. The Live Trust is a brilliant example of industry leadership and creativity, and the government fully supports it to ensure it delivers the results that all music lovers and the industry itself deserve."
Mark Davyd speaks at the Music Venue Trust annual report 2025 at London’s Victoria & Albert Museum. Credit: Georgia Penny
At the launch of their annual report earlier this year, MVT’s CEO Mark Davyd commended those proactively supporting the levy.
"These companies are delivering," he said of SJM, Kilimanjaro and AEG. "Live Nation, you know, and the whole industry knows, you are not. If the voluntary levy fails, it will not be the fault of the companies who have already embraced it, or Music Venue Trust, or the government, or any will to do it on behalf of individuals, artists, managers, agents, audiences or anyone else."
"It will be a direct consequence of the overwhelmingly dominant force in the arena and stadium market deciding not to deliver a voluntary levy. That’s your choice, Live Nation, and everyone in the industry hopes you make the right one."
The grassroots sector subsidized live music by £76.6 million in 2025, while larger shows at arena and stadium level saw UK live music contribute a record-breaking £8 billion to the economy.
Live Nation, who facilitated Harry Styles' contribution of £1 per ticket for his Wembley Stadium residency to the LIVE Trust, stated that they "support artists’ choices on charitable donations, and has worked with numerous artists who have contributed to the voluntary levy – from Coldplay to Biffy Clyro – and will continue to do so."
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Davyd also told NME that a fully-funded system with all major parties contributing to the levy and LIVE Trust could lead to a thriving tour circuit, more venue openings, and greater opportunities for artists.
"The ambition should be that within five to 10 years of the levy having been adopted and invested wisely, we should be seeing a healthy touring circuit and maybe we’ll get back up to the 30+ cities that used to get just about every tour, and then the 60 or 70 that would regularly feature on the national touring circuit."
"We’re missing a good two-thirds of the population with a music offer, and that’s not good for anybody."
Davyd added, "My personal view is that it would be a terrible shame if we ended up with a statutory levy. If the music industry can’t work out how to do this voluntarily, then we accept that we can work with the government to get there."
"By 2027, the number of venues should be starting to go back up again. By the end of this decade, we should able able to say very proudly, ‘We turned this around, more venues are opening than are closing, more communities are getting access to live music, more artists are getting more support, and more promoters can take more risks’."
"There’s a five-year window coming up in which we turn this around."
Visit thefac.org/ukatfund for more information or to apply to the UKAT fund, and livetrust.org for more on the LIVE Trust.
Meanwhile in the US, Live Nation’s antitrust trial is set to resume after over 30 US states rejected a settlement offer. The Department of Justice is accusing Ticketmaster and parent company Live Nation of abusing their power in the live events market to create an illegal monopoly.
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