Cameron Craig, Director of the MPG.
The MPG and UK Music are calling on the UK government to recognise recording studios as eligible for reduced business rates Retail, Hospitality and Leisure (RHL) scheme, a move which they say could safeguard hundreds of vital cultural spaces across the country.
There are over 500 recording studios operating across the UK, and alongside grassroots music venues, they form a crucial part of the country’s music ecosystem as well contributing directly to local economies by drawing footfall and supporting surrounding businesses. Many also host music performances that range from youth-focused leisure activities to professional-grade recordings of global significance.
However, despite their cultural and economic impact, recording studios are currently excluded from RHL support, a scheme which offers business rates relief to properties in the retail, hospitality and leisure sectors. This ruling places studios at a significant disadvantage compared to comparable venues. From April 2026, the government plans to introduce two reduced business rates 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. Studios are public-facing cultural spaces, and it’s only right they receive the same support as venues and other leisure businesses.” - Cameron Craig, Director, Music Producers Guild (MPG)
Opening a studio already requires significant initial investment, and a study carried out by the MPG in November 2024 revealed that business rates have increased by 25%. Of the studios who took part in the study, 100% said that they were unable to pass the cost increase onto their clients, and an alarming 50% said the increased costs meant they were considering closing their doors within the next 12 months.
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.
“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.” - Tom Kiehl, Chief Executive, UK Music
More information can be found on the MPG website, and you can sign the petition here.
