Music Venue Trust’s annual report paints a dismal picture of the state of the grassroots venue sector in the U.K., with 38% of businesses reporting a financial loss over the last 12 months. Sixteen percent of venues have closed.

Despite an increased demand for tickets last year, and more than £500m in revenue generation, 835 MVT members made just £2.5m or 0.5% profit for the period. The report details how, without a combination of grants and donations totaling £3.1m, the sector would have operated at a loss.

GMV’s staged more than 187k events in 2023, with 1.7m individual artist performances attracting an audience of 23.5m. The total amount that venues are subsidizing live music rose to £115m in 2023from £79m in 2022, an increase of 45% year-on-year, according to MVT.

Beverley Whitrick, COO of Music Venue Trust, said: “Without external support our entire sector would be bankrupt. We have been warning of these consequences for the last six years yet still the top end of the live music sector posts record profits while, with a few notable exceptions, turning a blind eye to those who discover, nurture and develop the artists that generate that revenue for them.”

With energy costs remaining high and rent increases averaging 37%, 164 member venues accessed the MVT Emergency Response Service. For the first time since the organization’s launch a decade ago, the primary cause of venue closure was a lack of financial viability.

“Enough is enough, this report speaks for itself and we will not allow this to continue,” MVT CEO Mark Davyd said. “We must either find a way to act collectively to get these venues and the artists who rely on them the financial support they need to survive or we will seek legislation to compel it.

“The idea that we, as an industry, cannot voluntarily create a levy to support our grassroots sector, unilaterally and without government intervention is absurd but we cannot escape the fact that we are simply not acting fast enough.”

Davyd is asking all of the main political parties for manifesto commitments ahead of the forthcoming general election that state that there must be a contribution from the most successful parts of the industry into the grassroots research and development carried out on their behalf.

“It’s time to stop the excuses—we can no longer accept complacency from those in a position to help prevent the annihilation of our sector.”