Concertgoers warned ticket prices may rise after arenas hit with soaring taxes

Concert arenas such as London’s O2 and Co-op Live are to be hit with soaring property taxes that could see their bills more than double over the next three years, sparking warnings that ticket prices will be sent surging.

Analysis of official government data for the Press Association has found a steep increase in the valuations of the venues across England and Wales.

Global tax firm Ryan’s calculation of Valuation Office Agency (VOA) data found that the rateable values have jumped by up to 300%, sending tax bills rocketing higher.

London’s O2 arena, which has hosted global stars such as Usher, Lady Gaga and Billie Eilish this year, is among the worst affected. Its property tax bill will jump up by nearly £2 million in 2026-27.

The Co-op Live in Manchester, Manchester Arena and Ovo Arena Wembley have also seen their rateable values rise, sparking big 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, and a new reduced multiplier to calculate their overall bills.

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.

But their values have been pushed higher 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% in the first year, they are still facing big increases in 2026-27 – 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 told the Press Association: “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.

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’s 300% rise in value to £3 million is the largest percentage increase of any major arena. It will see its property tax bill rise by £124,875 to £541,125 in 2026-27, according to Ryan.

But the O2 in London is expected to see one of the biggest increases in its tax liability, potentially rising by an eye-watering £1.8 million to £8 million in 2026-27, Ryan said.

Its rateable value has jumped by 175% to £30.5 million.

The Co-op Live, which opened in May 2024, is likely to see its bill race £432,900 higher to £1.9 million.

The Manchester Arena is expected to see its bill rise by £386,280, but it will still reach £1.7 million in the next financial year.

Birmingham’s Utilita Arena is heading for a £166,500 business rate rise to £721,500 as its value has surged 131%, while the M&S Arena & Convention Centre in Liverpool will be knocked by a £507,825 tax increase to £2.2 million.

Alex Probyn, practice leader for Europe and Asia-Pacific property tax at Ryan, told PA: “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.”