UK's top concert venues under threat of closure as taxes set to rise

Britain's top entertainment venues including the O2 and Co-op Live in Manchester have warned they are under threat from a new tax hike introduced by Chancellor Rachel Reeves. The historic Camden Underworld, a music venue in Sir Keir Starmer’s own Holborn and St Pancras constituency, could also face closure.

It follows the Chancellor’s decision to increase business rates for all properties with a rateable value above £500,000 from April 2026. The Government says this will affect warehouses used by online retail giants, and the money raised will be used to cut business rates for struggling smaller hospitality outlets including pubs and restaurants.

However the National Arenas Association has written to Treasury Minister Dan Tomlinson to warn the change “will put major pressure on arenas and other live music venues.” John Drury, Chair of National Arenas Association, and General Manager of OVO Arena Wembley, said: “There is a real danger that some of our country’s most historic and best-loved venues could be forced to close if this tax rise goes ahead.

“Arenas and live music venues are central to local economies and high streets across the UK, bringing people into towns and cities to spend money in hotels, restaurants, bars and shops, supporting jobs and local growth.

“They don’t just bring people together from across the UK – they attract visitors from around the world, generating hundreds of millions in spending and showcasing Britain’s world-leading live entertainment industry. The Government must change course on this tax rise before irreparable damage is done to high streets and communities right across the country.”

Upcoming events at the OVO include performances by Sam Ryder, Ricky Gervais, the Gladiators live tour and indie music stars My Bloody Valentine.

Other members of the National Arenas Association include M&S Bank Arena in Liverpool, BP Pulse Live in Birmingham and P&J Live in Aberdeen, as well as the O2 and Manchester’s Co-op.

Last year 27 million people attended arena events and the association says that for every 10,000 attendees, up to £2.3 million is generated for local economies with visitors spending money in hotels, bars, restaurants and shops.

Arenas also generate more than £100 million in VAT for the Treasury, the association says.

But many are already operating on tight profit margins. In the letter to Mr Tomlinson, also backed by the British Association of Concert Halls and Music Venue Trust, the association said: “Without an exemption for arenas and live music venues, this tax rise will unfairly penalise the 23 arenas all over the UK, force closures of grassroots venues already on the edge – iconic spaces like Camden’s Underworld – and will deter further investment in arenas at a time when Government wants to be encouraging new infrastructure development to drive growth, not hold it back.”