Major UK Concert Venues Face Surging Property Tax Increases

Major concert venues across the United Kingdom are bracing for a significant rise in property taxes, with some facing an increase of over 300% in their rateable values. This surge could lead to tax bills more than doubling within the next three years, dramatically impacting the music industry.

An analysis by global tax firm Ryan, utilizing data from the Valuation Office Agency (VOA), revealed that venues such as London’s O2 Arena and Co-op Live in Manchester are among the hardest hit. The O2 Arena, which has hosted international stars like Usher and Billie Eilish, is projected to see its tax bill rise by nearly £2 million by the financial year 2026-27. Other venues, including Manchester’s Co-op Live and Ovo Arena Wembley, have also experienced substantial increases in their valuations, leading to higher operational costs.

Impact of Rising Business Rates on Venues

The UK Chancellor, Rachel Reeves, confirmed in her November 26 budget that future business rates for commercial properties will be determined by valuations made in 2024. This new framework includes a reduced multiplier for calculating overall bills. Unlike traditional properties, many concert venues are rarely let on the open market, compelling the VOA to assess their value based on economic performance, which has been skewed due to the pandemic.

The VOA’s valuations are based on data from 2021, a year when many venues were closed or operating under severe restrictions. As a result, their property values have spiked significantly, despite the ongoing financial challenges faced by the live music sector.

While the transitional relief policy caps initial bill increases at 30% for large properties, venues may still confront steep hikes in 2026-27. Ryan anticipates that some venues’ tax liabilities could more than double within this period, posing a severe threat not only to larger arenas but also to smaller music venues across the UK.

Concerns from Industry Leaders

Industry leaders are sounding the alarm about the potential consequences of these increases. Mark Davyd, chief executive of the Music Venue Trust, has urged the government to implement immediate measures to provide substantial relief for music venues. He highlighted that many smaller venues could be forced to shut down, with concertgoers likely facing higher ticket prices as a result.

Speaking to the Press Association, Davyd noted, “People see these giant events, they see the flashing lights and all the incredible production. Now it’s being done on a very small profit margin. Live music is expensive to stage.” He further warned that elevated venue costs might discourage artists from performing in the UK, or compel them to shorten their tours.

The dramatic increases in property valuations are exemplified by Wembley Arena, which has reported a staggering 300% hike in its value, escalating to £3 million. Consequently, its business rates bill is expected to rise by £124,875, bringing the total to £541,125 in 2026-27. The O2 Arena’s rateable value has surged by 175% to £30.5 million, potentially pushing its tax liability up by £1.8 million to a total of £8 million.

Co-op Live, which opened in May 2024, is projected to see its bill increase by £432,900, bringing it to £1.9 million. Manchester Arena faces an increase of £386,280, raising its total to £1.7 million. Other venues, such as Birmingham’s Utilita Arena and Liverpool’s M&S Arena & Convention Centre, are also set to experience significant tax hikes.

Alex Probyn, Ryan’s practice leader for Europe and Asia-Pacific property tax, emphasized the importance of scrutinizing the VOA’s assumptions closely. He pointed out that while transitional relief may mitigate some immediate impacts, the overall tax burden could still more than double over the next three years.

With rising costs threatening the sustainability of the UK’s live music landscape, calls for government intervention are growing louder. As venues navigate these financial challenges, the future of live music in the UK hangs in the balance.