The government has committed to reducing business rates for small and medium-sized music venues in England and Wales for the first time. The 50% reduction available to smaller retailers will be extended to 230 small and medium-sized music venues with a rateable value below £51,000. Independent cinemas will also benefit from the reduction.

The Music Venue Trust estimates that the move will save each site an average of £7,500 a year, and release more than £1.7m back into the grassroots live music sector. Music Venue Trust strategic director Beverley Whitrick said it was a “much needed and long overdue boost”.

Nathan Clark of the Brudenell Social Club in Leeds said he was overjoyed by the news. “This reduction of business rates supports an ability to reinvest, helping new and emerging artists, create accessible events, and further support a vibrant, but financially strained environment for the wider community.”

The last decade has seen 35% of grassroots music venues across England and Wales close. The UK’s first live music census, published in February 2018, found that a third of British venues outside London were fighting to survive in the face of high business rates and noise restrictions.

Shame performing at the Thekla, Bristol. Photograph: Jordan Hughes

Of almost 200 small music venues (with a capacity of up to 350 people) surveyed, 33% reported that increases in business rates had an “extreme, strong or moderate” impact on their existence in the past 12 months. One medium-sized venue (351–650 capacity) reported their rateable value quadrupling from £17,500 to £72,000.

Business rates are by no means the only challenge facing the UK’s music venues. In March 2019, the British music industry body that collects royalty payments for musicians said it planned to more than double the rates paid by pubs, bars and nightclubs to play recorded music. Changing drinking habits have also been blamed for the closure of small venues.

The news regarding the lowering of business rates arrives at the start of Independent venue week, a celebration of the UK’s grassroots music venues. Established performers including Gruff Rhys, Wire and Anna Calvi will perform at venues far smaller than their average touring stops in order to draw attention to the important roles they play in fledgling artists’ careers.

Mark Davyd, CEO and founder of the Music Venue Trust, said there was more work to be done. “We look forward to working with the governments in Scotland and Northern Ireland to make sure that grassroots music venues across the UK have a level playing field when it comes to business rates and public subsidies.”