Major concert venues such as London's O2 and Co-op Live are set to face skyrocketing property taxes, potentially more than doubling their bills over the next three years.
An analysis of official government data conducted for the Press Association has revealed a sharp rise in the valuations of these venues across England and Wales.
Global tax firm Ryan used Valuation Office Agency (VOA) data to calculate that rateable values have soared by up to 300%, leading to significantly higher tax bills.
READ MORE: {}
Among the hardest hit is London's O2 arena, which has played host to international stars like Usher, Lady Gaga, and Billie Eilish this year. Its property tax bill is projected to increase by nearly £2 million in 2026-27.
Other venues such as Manchester's Co-op Live, Manchester Arena, and Ovo Arena Wembley have also seen their rateable values escalate, resulting in substantial bill increases.
Chancellor Rachel Reeves confirmed in her November 26 budget that new business rates payments for commercial properties would be based on valuations made in 2024, with a new reduced multiplier applied to calculate their overall bills.
As these arenas are seldom let on the open market, the VOA must determine their value based on economic performance rather than rents.
However, their values have been driven up partly due to the timing of the data used by the VOA, which compares figures from 2021 when arenas were either closed or heavily restricted due to the pandemic.
Most Read
While large properties have their bill increases capped through transitional relief at 30% in the first year, they are still facing significant increases in 2026-27 – and Ryan said their tax liabilities could more than double within three years.
Smaller music venues across the 海角视频 are also set for steep rates bill rises, with many voicing concerns about the impact on an already strained sector.
Mark Davyd, chief executive of the Music Venue Trust, urged the Government to take immediate action to offer higher relief on business rates for music venues, warning that many smaller ones will be forced to shut down while concertgoers will also face higher costs.
Speaking to the Press Association, he said: "It's going to have to be passed on (in ticket prices).
"People see these giant events, they see the flashing lights and all the incredible production there is at this level.
"Now it's being done on a very small profit margin. That's the reality. Live music is expensive to stage. There's a huge number of people that you never see."
He suggested that higher venue costs may deter artists from coming to the 海角视频, or cause them to cut their British tours short.
Don’t miss
He said: "Music has been singled out to be attacked with incredibly high rateable values. It looks as though nobody realised that was going to happen and therefore there are no plans to manage it or mitigate it.
"The Government needs to step in as an urgent measure."
Wembley Arena has experienced the steepest percentage increase amongst major arenas, with its value soaring by 300% to £3 million. This dramatic rise will push its business rates bill up by £124,875 to £541,125 in 2026-27, according to Ryan.
However, London's O2 Arena is set to face one of the most substantial increases in tax liability, with its bill potentially surging by a staggering £1.8 million to reach £8 million in 2026-27, Ryan revealed. The venue's rateable value has leapt by 175% to £30.5 million.
Co-op Live, which launched in Manchester in May 2024, is projected to see its bill rocket by £432,900 to £1.9 million.
Manchester Arena is anticipated to face a £386,280 increase, bringing its total to £1.7 million in the forthcoming financial year.
Birmingham's Utilita Arena is braced for a £166,500 business rates increase to £721,500, following a 131% surge in its value, whilst Liverpool's M&S Arena & Convention Centre will be hit with a £507,825 tax hike, taking its value to £2.2 million.
Alex Probyn, Ryan's practice leader for Europe and Asia-Pacific property tax, explained to PA: "Transitional relief will soften the first-year impact, but bills can still more than double over the three-year cycle."
He added: "With valuations of this magnitude, operators should be scrutinising the VOA's assumptions very closely."