The Music Venue Trust's latest annual report shows grassroots UK music venues are closing at a rate of roughly two a month, even as festival sponsorship revenue soars, raising the question of whether brand money could help preserve small clubs and pub venues. The report highlights a stark contrast within the same music industry: the intimate rooms where new artists and genres are developed are struggling financially, while the larger festival stages further along the pipeline are increasingly attractive to corporate sponsors such as car manufacturers and fashion brands.

Between July 2024 and July 2025, 30 grassroots venues closed permanently and a further 48 stopped hosting live music, contributing to a 19% contraction in the sector's workforce, equivalent to around 6,000 jobs. Over half of venues still operating, 53.8%, made no profit last year, with average margins across the sector at just 2.5%. Meanwhile, festival sponsorship revenue has grown between 21% and 30% year-on-year and now makes up nearly 35% of total festival income. The Music Venue Trust is calling for a statutory grassroots levy, warning that without one, further closures are likely before the end of 2026, though it notes 2025 saw the slowest annual rate of decline since 2018.