28.01.2026: UK Music Chief Executive Tom Kiehl has welcomed the Government’s U-turn on business rate hikes for music venues and pubs and is now urging Chancellor Rachel Reeves to apply the same tax relief to our world class recording studios.
The Government’s November 2025 Budget revealed that music venues and pubs were set to face significant business rate increases, with many facing potential closure as a result.
However, after a campaign from the music and hospitality sector to rethink its approach, the Government has now rowed back on its position, announcing that as of April 2026 music venues and pubs will get 15% off their new business rates bill. This means they will save an average of just under £1,700 each. The bills will also be frozen for a further two years.
Recording studios, however, are not included in the U-turn. For many, the proposed business rate hikes pose an existential threat not only to their future, but the £8 billion contribution the music industry makes to the economy.
UK Music Chief Executive Tom Kiehl said: “While the extra support for pubs and music venues is welcome, we must not forget recording studios that are facing crippling rate increases that will leave many facing closure.
“Why should the studio used to film Hamnet be entitled to business rate relief, yet the studio used to record the soundtrack not be eligible? This is pure discrimination and recording studios must not be treated as poor cousins in the creative economy.
“The Government must think again and extend a lifeline to support our world-leading studios that play such a vital part in our communities, talent development and support thousands of jobs.”
The Music Producers’ Guild (MPG) handed in a petition to Downing Street in December 2025 calling for government to take urgent action and reverse its plans for business rate increases for studios. The letter was signed by a raft of legendary artists and producers, including the likes of Peter Gabriel, Pete Townshend, Robert Smith, producer Catherine Marks (Wolf Alice), and producer Paul Epworth (Adele).
Politicians have also thrown their weight behind the campaign, with Lord Brennan of Canton raising the issue in the House of Lords, and Labour MP Anneliese Midgley has sent an open letter signed by over 50 other Labour MPs to Chancellor Rachel Reeves urging her to offer recording studios the same protections offered to venues and pubs.
This story was reported by:
Back to news