opinion
Centre Stage: Mark Davyd on the potential impact of the upcoming budget
On Wednesday, November 26, the Chancellor will deliver a Budget that could change the fate of the UK’s grassroots live music sector. The question is, as always, whether it will.After a decade of warm words and missed opportunities, international ...
Centre Stage: Mark Davyd on the benefits of the not-for-profit model
In mid-2025, the UK’s grassroots music venue (GMV) sector stands at a defining moment. Across the country, operators are increasingly transitioning to not-for-profit structures. According to the latest Music Venue Trust data, 33% of GMVs are now formally registered as not-for-profit entities – up 29% on the previous year. One in three venues is a not-for-profit entity; in 2014, it was one in 34. The most common structure is the Community Interest Company, accounting for 18.2% of Music Venues Alliance members. The above isn’t a paperwork exercise, it’s a fundamental recognition of what these venues have been all along: community-powered, publicly-engaged cultural organisations.In 2024, the average GMV posted a profit margin of 0.48%. Nearly 44% reported a loss. Live music brought in £113.6 million but cost £275.7m to stage – a subsidy of over £162m delivered by the venues which was offset by food and beverage sales, volunteer labour and the personal sacrifice of operators. Ticket prices were static, averaging £11.48. These venues are not failing businesses, they are succeeding as cultural institutions despite being structurally underfunded.In April 2025, the situation became more acute. Business rates relief in England dropped from 75% to 40%, adding £7m in annual pre-profit taxation. In Wales, a similar cut last year cost venues £127,000. In Scotland, where no dedicated relief existed in 2024, GMVs paid £780,000 more than those in England. These figures are devastating when compared to the sector’s total profit in 2024 – just £2.5m. These are systemic flaws that threaten the foundation of the live music ecosystem.One of MVT’s responses has been to help venues understand what they are – providers of cultural access – and to support them in their operations. MVT has, over 10 years, developed guidance to help venues assess their structures, evaluate the benefits of not-for-profit registration and navigate the transition. Through consultation, model documents, legal referrals and strategic mentoring, venues are being able to formalise their status and unlock the benefits that come with it.Those benefits are considerable. Charitable and not-for-profit entities can access reduced business rates, apply for grant funding and reclaim VAT on tickets. This exemption allows venues promoting qualifying cultural events to sell tickets without adding VAT – enabling them to retain 100% of ticket revenue. In a sector where every pound matters, this is a necessity. It allows for higher artist fees, better conditions for staff, upgraded equipment, and long-term planning. Applying all these benefits might mean that venue operators can, finally, pay themselves and think about a future for their venue. This transformation is mirrored in how MVT has structured its own investments. Since 2021, MVT has distributed more than £7m to support the sector: £485,000 in direct venue grants, £4.1m to support venue, artist and promoter-led touring, and £2.6m through Music Venue Properties to acquire and protect venue freeholds. The aim is been simple: wherever we can, we prioritise investment through not-for-profit entities that maximises benefits to all parts of the ecosystem. MVT’s approach recognises what traditional industry investment models have ignored: that GMVs are not commercially scalable, but they are socially indispensable. They host 162,000 events annually, employ over 30,000 people, and serve as the foundation of the UK’s entire music business. They provide research and development, talent incubation and public access to culture.At the same time, the challenges remain huge. GMV programming is shrinking. The average venue now hosts fewer than four events per week. Ticketed live music is in decline, dozens of towns and cities have dropped off the touring map. Free-entry shows make up over 35% of programming – a reflection of audience hardship, venue fragility and commitment to access. These venues are not only absorbing commercial risk, they are subsidising cultural life for millions of people.The UK has an opportunity to lead the world in reshaping how music culture is supported. We have the structures, the mandate, the investment mechanisms and the political momentum. For those in the industry concerned about the direction of the Grassroots Levy, those who ask why should we support profit-making entities that can’t make it work, here is your answer...These venues are not profit-making entities, they are cultural institutions that have been operating for years in the public interest. By formally aligning themselves with the not-for-profit values they embody, they are proving they can make it work as community-led R&D spaces delivering the future of music. Supporting them isn’t charity. It’s investment in the next generation of artists, audiences and ideas that will sustain us all.
Todd Heppenstall of Saxton Bampfylde on why recruitment in the music world must evolve
Executive search firm Saxton Bampfylde is seeking to uncover a new generation of music business talent, with an emphasis on welcoming employees from outside the boundaries of the industry’s traditional borders. Here, Todd Heppenstall, partner – arts, creative industries & sport at the London-based company, writes exclusively about its plans for the business and explains why recruitment in the future needs to be “sophisticated, creative and open-minded”…In an industry that thrives on breaking convention, why should your executive search still be playing by the book?“Forgive me, I should start by introducing myself, as I strongly suspect many readers won’t know much about Saxton Bampfylde. So, here’s a quick lowdown…“Established in 1986 on the founding principles of doing executive search differently, today we are proudly the leading firm for the arts and creative industries. Headhunters, if you must. Every year, our practice places scores of executives in roles from C-suite to senior leadership, across a diverse range of businesses.“While our name may be new to you, the organisations that we partner with definitely won’t be. We have placed the very best leadership talent in some of the world’s most important institutions – from the National Theatre to the Grammys, Channel 4, Sky and the BBC, to SXSW London and the Royal Albert Hall, to name just a few. And it’s not just the creative industries; more widely across the firm, we work with the likes of Burberry, LVMH, HM Government, Tesco and HarperCollins, amongst others.“Now it probably won’t surprise you that as a firm based at The Ministry, the central London workspace run by the Ministry Of Sound club, music is more than a passion of ours. It’s integral to our business – our CEO studied music at university, we have singers, saxophonists, guitarists (guilty) and even a company song. “In recent months, we’ve been carrying out a ‘state-of-the-music industry’ exercise, analysing not streaming numbers or chart positions, but people.“Why? The music industry is home to some of the most talented executives in the UK, and as headhunters, we wouldn’t be doing our job if we weren’t keeping an eye on that talent. We also know how attractive the creative and commercial leadership talent found across the music business is to the boards of the many brilliant arts organisations we work with across the UK. One of our starkest findings was just how few of you serve on boards, and that’s something we’re determined to change in the coming months. “And it’s not just the most senior executives we are looking at; we are very proud to be part of OnBoard, a new non-profit mentoring programme geared at supporting talented individuals from disadvantaged and non-traditional backgrounds as they start their journeys. The programme, which provides workshops, advice and mentorship, is open to those who are in their first 10 years of their careers and are interested in taking on a board role. “Now, this finding won’t surprise you – what we consistently hear from music industry leaders is that the age-old industry tradition of only looking inwards for talent is beginning to unravel, particularly within the larger organisations. “For too long, the music business has been missing out on a significant pool of executive and senior leadership talent that exists beyond its borders and for decades, leadership in the music industry has been largely a closed club, often defined by a well-worn Rolodex, a golden ear and years spent climbing the ladder within a major corporation. But in today’s complex globalised and data-drenched digital landscape, where the fundamental shift has been from a product-based to a service-based world, that traditional model needs reimagining. “Look around and ask yourself, when was the last time your company hired a leading sports or film executive...? The examples are few and far between.“And don’t get me wrong, this is not a devaluation of the talent already in abundance across the industry, but appointing the next generation of music executives deserves a sophisticated, creative and open-minded search. It also probably won’t surprise you to hear that many other industries have moved well ahead of the music world when it comes to looking beyond their own sectors for leadership talent. “In fact, you’d be hard pressed to find a successful business from another sector whose executives had only ever worked in one industry. We’re increasingly seeing this in sport, but interestingly also in the arts. For example, we were proud to work with the National Theatre to appoint a senior Channel 4 executive. We have also placed a major label CEO at the RSA and a senior politician in the top job at the V&A.“And these appointments are exemplary of the way we feel search should be thought about and approached. At SaxBam, we bring an incredible and ever-growing network of executives from every leading sector, and we approach every search with a blank page. We start by ruling nobody out.“When we are running our searches for clients, we always encourage them to keep an open mind on backgrounds and journeys, to focus on the core skills needed for the role and to realise that cross-pollination brings enormous innovation and wider benefit to businesses. “Finally, as the creative sector continues its battle with the algorithm, that’s one thing we don’t share in common. The very best executive search remains people-centred and human-driven.”
