Some of the UK’s best-known live entertainment venues, including The O2, Co-op Live, Manchester Arena, the First Direct Arena in Leeds and the SSE Arena at Wembley Stadium, are preparing for some of the biggest business price rises in the country after announcing dramatic increases to their rateable values (RVs) for 2026.
New analysis from global accountancy firm Ryan shows that valuations of almost all major arenas have increased, in some cases more than doubling, with Wembley Arena’s valuation soaring by 300%. The increase reflects a return to busy schedules and booming demand for live music and events post-pandemic.
Alex Probyn, property tax practice leader in Europe and Asia Pacific at Ryan, said the scale of the increases was a direct result of the valuation of arenas.
“Arenas are valued using the income-expense method, meaning business rates are determined by income and operating performance rather than rental records,” he explained.
“The 2023 ratings list reflects conditions in April 2021, when most venues were closed or severely restricted. The 2026 list reflects April 2024 – a period of full reopening. This dramatic change in trading conditions is why many arenas are seeing such significant increases.”
Transition relief in England will limit increases for large properties to 30% in 2026/27 and 25% plus inflation in the following two years. However, because the caps increase annually, the total liabilities over the entire three-year cycle can be much higher, even if the initial increase appears controlled on paper.
Ryan’s modeling shows that some areas will face significant cash increases next year alone, despite the 30 percent cap:
• The O2 Arena, London: +£1.85m
• M&S Bank Arena Liverpool: +£507,825
• Co-op Live, Manchester: +£432,900
• Manchester Arena: +£386,280
• First Direct Arena, Leeds: +£199,800
• Utilita Arena Birmingham: +£166,500
Probyn warned that the transitional caps would give operators a false sense of security.
“Transitional relief will mitigate the impact in the first year, but bills can still more than double over the full cycle,” he said. “When making assessments of this magnitude, operators should examine the VOA’s assumptions very carefully.”
With venues already under pressure from rising costs, tight margins and economic uncertainty impacting consumer spending, the latest ratings list is likely to place further financial strain on an industry still rebuilding in the wake of Covid-19.
Operators are now facing significantly higher tax burdens as investment in new tours, productions and venue modernization gathers pace.
