UK Live Music Economy Hits Record 8 bn in 2024, But Grassroots Venues Face Crisis

On 2 July 2026, the House of Lords will debate whether the UK government has accurately measured live music’s cultural and economic impact. The debate comes after a cascade of reports that show the sector as a powerful economic engine, yet one that is under strain.

UK Music’s 2025 report, released in November 2025, marked a record £8 bn of gross value added (GVA) for the music industry in 2024, up 5 % from £7.6 bn in 2023. Export revenue climbed to £4.8 bn, also a 5 % rise, while employment grew to 220 000, a 2 % increase over the previous year. The organisation notes that the growth rate has slowed from the double‑digit gains seen since 2021, attributing the moderation to fewer major releases and tours in 2024.

Live music has been a key driver of that expansion. The Live Music Industry Venues and Entertainment (LIVE) annual report for 2024 records consumer spend at £6.68 bn—a 9.5 % jump from 2023 and 28.2 % higher than 2022. LIVE describes the sector’s post‑Covid recovery as “remarkable,” with 2024 spending £2 bn more than the pre‑pandemic 2019 level. The report projects further growth in 2025, citing a strong lineup of artists, especially Taylor Swift, and a continued rise in younger audiences.

Spending is heavily concentrated in London. Greater London captured 28.9 % of all live‑music expenditure in 2024 and 33.3 % of concert income. The top five cities—London, Manchester, Glasgow, Birmingham, and Cardiff—accounted for 46.2 % of total spend. Employment figures from LIVE show 234 630 people working in the live‑music sector in 2024, a 2.2 % increase from 2023 and 11.7 % more than in 2019. Casual staff make up 78.8 % of the workforce, a share that has risen since the pandemic.

Despite this overall strength, grassroots venues are in crisis. The House of Commons Culture, Media and Sport Committee’s 2024 report on grassroots venues highlighted that venues are closing at a rate of two per week, and that artists and promoters are struggling with a cost‑of‑touring crisis. UK Music notes that many independent festivals and venues have shut in recent years, and that touring income has not kept pace with rising costs. The committee recommends a comprehensive government review of the live‑music ecosystem.

Brexit has also taken its toll. UK Music’s 2025 survey found that 32 % of respondents were affected by post‑Brexit restrictions, up from 28 % in 2023. Of those affected, 95 % reported a decrease in earnings. The organisation cites a 27 % decline in live‑performance claims for EU festivals with capacities under 5 000 between 2019 and 2023, which has reduced royalties for songwriters.

Artificial intelligence adds another layer of challenge. UK Music warns that AI companies are using unlicensed music for training, potentially infringing rights. The body calls on the government to reject exemptions that undermine compensation and to impose disclosure obligations on AI developers.

In response to the sector’s needs, the government announced a £30 mn music growth package in June 2025, covering touring, performance, mentoring and export opportunities for emerging talent. A separate £2.5 mn grant supports grassroots venues, recording studios, promoters and festivals through the Arts Council England’s grassroots music fund. The government is also working with the industry on a voluntary £1 per ticket levy for stadium and arena shows, which LIVE’s trust collected £6 mn in 2026. Critics argue that VAT on the levy reduces the net benefit.

Business rate policy is being adjusted to ease pressure on venues. From 2026/27, permanent lower multipliers will apply to retail, hospitality and leisure premises with rateable values under £500 k, following a temporary 40 % relief in 2025/26.

The upcoming Lords debate will ask the government to explain its assessment of live music’s contribution and to outline how it will address the challenges faced by grassroots venues, the impact of Brexit, and the risks posed by AI. The industry’s economic data and the sector’s growth prospects will form the backdrop to that discussion.