Ticket prices for live music events could be set to soar as arenas such as the O2 and Co-op Live face property taxes under Rachel Reeves‘s tax bomb budget.
The venues could see their bills more than double over the next three years, sparking concerns about the cost of already expensive music events.
Global tax firm Ryan’s analysis of Valuation Office Agency (VOA) data found that the rateable values of venues across England and Wales have risen by up to 300 per cent.
The O2 Arena in London, which this year hosted Lady Gaga, Billie Eilish and Usher, is among the worst affected.
The venue is set to see its tax bill jump by nearly £2 million next year.
The Co-op Live in Manchester, Manchester Arena and Ovo Arena Wembley have also seen their rateable values rise, which is set to spark huge bill rises.
In her Budget last month, the Chancellor Rachel Reeves announced that a change in business rates for commercial properties would be based on their valuations in 2024, with a new reduced multiplier to calculate their overall bills.
The new tax is also set to hit Premier League stadiums, with clubs facing multimillion-pound tax rises.
Lady Gaga, pictured performing at the O2 Arena in London in September
Usher was another global superstar who performed at the music venue in 2025
The O2 could see its tax bill rise by an eye-watering £1.8 million to £8 million in the next tax year, Ryan said.
Its rateable value has jumped by 175 per cent to £30.5 million.
Wembley Arena’s 300 per cent rise in value to £3 million is the largest percentage increase of any major arena.
It will see its property tax bill rise by £125,000 to £541,000 next year, according to Ryan.
The Co-op Live, which opened in May 2024, is likely to see its bill shoot up £433,000 higher to £1.9 million.
The Manchester Arena is expected to see its bill rise by £386,000, but it will still reach £1.7 million in the next financial year.
Birmingham’s Utilita Arena is heading for a £167,000 business rate rise to £722,000 as its value has surged 131 per cent, while the M&S Arena & Convention Centre in Liverpool will be knocked by a £508,000 tax increase to £2.2 million.
As arenas are rarely let on the open market, the Valuation Office Agency (VOA) has to calculate their value from economic performance, rather than rents.
The O2 Arena could see its tax bill rise by an eye-watering £1.8 million next year. Pictured: Billie Eilish performing in July
However their values have increased partly because of the timing of the data used by the VOA, which are compared with figures for 2021 when arenas were shut or heavily restricted because of the pandemic.
While large properties have their bill increases capped through transitional relief at 30 per cent in the first year, they are still facing big increases in the next tax year – and Ryan said their tax liabilities could more than double within three years.
Smaller music venues across the UK are also in line for painful rates bill rises, with many warning about the impact on a sector that is already under pressure.
Mark Davyd, chief executive of the Music Venue Trust, called on the Government to take urgent action to offer higher relief on business rates for music venues, warning many smaller ones will be forced to close while concertgoers will also have to pay more.
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 said higher venue costs may put off artists from coming to the UK, or cause them to cut their British tours short.
The Co-op Live, which opened in May 2024, is likely to see its tax bill rise to £1.9 million
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.’
Alex Probyn, practice leader for Europe and Asia-Pacific property tax at Ryan, added: ‘Transitional relief will soften the first-year impact, but bills can still more than double over the three-year cycle.
‘With valuations of this magnitude, operators should be scrutinising the VOA’s assumptions very closely.’
The news will come as a shock to concertgoers, who have already seen prices for live events soar in recent years.
The Labour manifesto promised stronger protections to stop consumers being scammed or priced out of events by touts.
Touts frequently use bots to buy tickets in bulk the moment they go on sale, which they can then sell on for huge mark-ups on secondary ticketing websites.
Premier League clubs are also set to be hit with the new tax rises.
Arsenal will face the largest cash increase of all Premier League clubs, with the analysis showing they are set to see their rates bill rise by £1.1 million to £4.8 million for the year from April, after the valuation of the stadium rose to £11 million.
Manchester United will also see the rates bill for Old Trafford jump by £973,840 from April to £5.79 million.
The Tottenham Hotspur Stadium will only get a £96,200 rise but it will still have the largest bill in the division for its stadium, at £5.8 million.