UK’s biggest arenas hit by huge business rates surge as valuations soar up to 300%

Some of the UK’s most prominent live-entertainment venues, including The O2, Co-op Live, Manchester Arena, the First Direct Arena in Leeds and Wembley’s SSE Arena, are bracing for some of the sharpest business-rate rises in the country after dramatic increases in their rateable values (RVs) were revealed for 2026.

New analysis from global tax firm Ryan shows that almost all major arenas have seen valuations surge, in several cases more than doubling, with Wembley Arena’s assessment rocketing by 300%. The spike reflects a return to packed schedules and booming post-pandemic demand for live music and events.

Alex Probyn, Practice Leader for Europe & Asia-Pacific Property Tax at Ryan, said the scale of the rises is the direct result of how arenas are valued.

“Arenas are assessed under the Receipts and Expenditure method, meaning business rates are driven by income and operating performance rather than rental evidence,” he explained.
“The 2023 rating list reflected conditions in April 2021, when most venues were shut or heavily restricted. The 2026 list reflects April 2024 — a period of full reopening. That dramatic shift in trading conditions is why many arenas are seeing such significant increases.”

Transitional relief in England will cap increases for large properties at 30% in 2026/27, then 25% plus inflation in the following two years. But because the caps compound annually, total liabilities over the whole three-year cycle can be far higher, even if the initial rise looks controlled on paper.

Ryan’s modelling shows that next year alone, even with the 30% cap, some arenas will face major cash increases:
• 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 operators must not be lulled into a false sense of security by the transitional caps.
“Transitional relief will soften the first-year impact, but bills can still more than double over the full cycle,” he said. “With valuations of this magnitude, operators should be scrutinising the VOA’s assumptions very closely.”

With venues already under pressure from rising costs, tight margins and economic uncertainty affecting consumer spending, the latest rating list is set to put further financial strain on an industry still rebuilding after Covid-19.

Operators now face the prospect of significantly higher tax bills just as investment in new tours, productions and venue upgrades picks up pace.

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UK’s biggest arenas hit by huge business rates surge as valuations soar up to 300%