New report from Music Venue Trust says 'grassroots' venues need urgent help to survive.
Report by Victoria Grimes
It may be small, but The Snug in Wigan is a giant when it comes to spotting new musical talent.
By night, its 'live session' events attract bands and artists from all over the region, giving them a chance to perfect the art of performing in front of a live audience.
By day, it's a hub for the local community, with food, coffees and various clubs meeting to spend time together.
But times are tough. Owner Rachael says that the energy crisis, combined with rising operating costs are taking their toll:
"We're just breaking even. How long can we go on like that - just breaking even?
"Its only going to take one thing to go wrong, like the dishwasher breaking, then we would have to pay out for that and then we're back on the breadline.
"I want to keep all my staff on and to keep paying my bills, but it's difficult."
The Snug is just one of many grass roots music venues, which having just recovered from the Pamdemic, are now facing unprecedented cost increases.
A new report from the Music Venues Trust says that the future is looking bleak for many venues.
The charity represents almost 1000 grassroots music venues across the UK and says that its members make a contribution of more than half a billion pounds to the economy.
The report identified a 16.7% decline in events since 2019 as venues were forced to make significant cutbacks to continue operating solvently.
This decrease saw the number of events staged per week in individual venues fall from 4.2 in 2019 to just 3.5 in 2022.
The report also identified that in 2022, the average grassroots music venue capacity was 308, of which 40% was utilised per event, which translates to an average of 124 audience members per event.
This is 11% down from 2019 when the average capacity was 51%.
The total income from those events was over £500m but venues reported an average profit margin of just 0.2% resulting in them subsidising live music performances by around £79m last year.
The figures, combined with rising operating costs, says Jay Taylor from MVT, paint a worrying picture:
"The highest increase in energy costs we saw in one music venue was 1000 percent.
"That is going to close a venue as quick as knocking it down."
MVT is now calling on the government and the wider music industry to support the sector, which it says is “past the tipping point.”
They have identified key areas where more support is needed, including an end to business rates and scrapping VAT on ticket sales.
"We'd like to see zero VAT on ticket sales and zero business rates. That would help stabilise the sector and allow them to continue doing the amazing work they do.
"We would also like to see statutory rights of consultation with regards to building developments next to music venues. "
The government have been contacted for a response.
They also want to see larger venues playing their part in helping the smaller ones and say that a levy placed on tickets sold at arenas ,could provide a 'pipeline investment fund' to grass roots venues.
Jay went on: " If the arenas want to see people on their stages in years to come, they are going to have to invest in those venues that are doing the 'research and development' work at a grass roots level."
''There will be no artists of tomorrow without those small venues doing that brilliant work.''
Music student Alannah Webb understands the need for small venues and supports the calls.
She and her band The Facades played their first live gig at The Snug, an opportunity, she says, for which they will be forever grateful: " Having independent venues beings willing to give you a gig is a huge help when you're starting out because it gives you a platform.
" It means so much to be able to show your music and your skills to an audience."
She added that it's also good for the venues: "They want these bands to come back when they have played the big venues.
" I'll definitely come back in the future and play here. It's my favourite venue."