14.10.2025: UK Music is supporting the Music Producers Guild’s (MPG) petition to Government to recognise recording studios as eligible for reduced business rates under the Retail, Hospitality and Leisure (RHL) scheme – a move which could help save hundreds of crucial cultural spaces the length and breadth of the UK.
There are currently more than 500 recording studios operating across the UK. These spaces are a vital component of our world-leading music industry and serve as invaluable cultural hubs in their creative communities. They also contribute directly to local economies by attracting footfall to and supporting local businesses. Many offer onsite catering and host live music performances and youth-focused activities.
However, despite their cultural and economic contribution, recording studios are currently excluded from RHL support, which offers business rates relief to properties in the retail, hospitality and leisure sectors. Studios also require significant initial investment and are facing rising operational costs, putting them at a major disadvantage compared to comparable venues.
From April 2026, the Government is planning to introduce two reduced business rates tiers for RHL properties, but unless changes are made, recording studios will remain outside the scope of the relief.
UK Music Chief Executive Tom Kiehl said: “Our world-leading studios are a critical part of the UK music industry. They nurture talent, attract global stars to work here and help create music loved by millions across the world. However, many are struggling to survive in the wake of rising costs. The Government could deliver them a lifeline by cutting business rates to give them the chance to thrive and help our economy grow.”
MPG Director Cameron Craig said: “This is a once-in-a-generation chance to safeguard some of the UK’s most iconic recording studios. Studios are public-facing cultural spaces, and it’s only right they receive the same support as venues and other leisure businesses.”
A November 2024 study by the MPG revealed that business rates for studios have surged by 25%, threatening the viability of many.
The study found that:
- 100% of studios were unable to pass these increases on to clients.
- 50% of studios were considering closure within the next 12 months due to rising costs.
Inclusion in the RHL category would provide an average 40% reduction in business rates, a lifeline for studios struggling with spiralling overheads. The financial impact on the Treasury would be minimal, while the benefits to local economies and the UK’s cultural output would be substantial. Industry leaders are now urging Chancellor Rachel Reeves to take action and grant recording studios their own classification within the RHL business rates framework.
You can join the call for Government to include recording studios in the RHL category by signing the MPG’s petition here.
PHOTO: Mike Banks @ RecordProduction.com
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