MPG and UK Music warn hundreds of UK recording studios at risk without tax relief

The Music Producers Guild, supported by UK Music, is calling on the government to recognise UK recording studios as eligible for reduced business rates under the Retail, Hospitality and Leisure (RHL) scheme, a move that could safeguard hundreds of vital cultural spaces across the country.

With over 500 recording studios operating across the UK, these spaces form a crucial part of the music ecosystem, similar to grassroots music venues. Studios require significant initial investment, face rising operational costs, and contribute directly to local economies by drawing footfall and supporting surrounding businesses.

Many studios offer on-site catering and host music performances, from youth-focused leisure activities to professional-grade recordings of global significance.

Despite their cultural and economic impact, recording studios are currently excluded from RHL support, which offers business rates relief to properties in the retail, hospitality, and leisure sectors. This places them at a significant disadvantage compared to comparable venues.

From April 2026, the government plans to introduce two reduced business rate tiers for RHL properties, but unless changes are made, recording studios will remain outside the scope of the relief.

“This is a once-in-a-generation chance to safeguard some of the UK’s most iconic recording studios,” said Cameron Craig, director of the Music Producers Guild (MPG). “Studios are public-facing cultural spaces, and it’s only right that they receive the same support as venues and other leisure businesses.”

UK Music Chief Executive Tom Kiehl added, “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.”

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, and 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.

Sign the petition here to recognise UK recording studios as eligible for reduced business rates under the Retail, Hospitality and Leisure (RHL) scheme.