UK theatre ‘under growing pressure’ from rising production costs, report says
The Society of London Theatre and UK Theatre found that the costs of running and creating productions continues to pose a threat to the industry.
The UK theatre industry is “under growing pressure” due to rising production costs and is in need of policy reforms as the demand for live performance continues to soar, a report has said.
The costs of running and creating theatre continues to pose a threat to the industry with policy changes needed to help “stabilise the sector and unlock growth”, according to a report from the Society of London Theatre (SOLT) and UK Theatre.
The report, which examined the state of theatre in the UK in 2026, said: “While demand for live performance has never been higher, the financial model behind producing theatre is under growing pressure.”
It added: “Production budgets have climbed steadily over the past decade as labour, materials, energy and building maintenance costs have increased.
“At the same time, theatres have largely held ticket prices steady in real terms to protect access for audiences.”
The report found that UK theatres are “busier than ever” with more than 37 million people attending across the UK last year, with London’s West End accounting for 17 million.
It also estimated that the average price of a West End ticket is 8.9% lower in real terms than in 2019, with less than 4% of tickets exceeding £150.
The report projects that 91% of theatres expect total costs to rise, including staffing, supply, energy and building maintenance.
It outlined policy changes that could help the sector’s financial sustainability, such as reforming business rates for theatres, extending theatre tax relief to support touring productions, introducing stronger incentives for donations, and ensuring public funding settlements keep pace with inflation.
“With the right policy environment, theatre can continue to grow as one of the UK’s most distinctive cultural and economic strengths,” it said.
The report added that despite the soaring popularity of live performance, 36% of theatres will face an operating deficit in 2026, rising to 51% in the subsidised sector.
It also found that 36% of UK theatres expect turnover to increase this year, down from 60% last year.
The SOLT and UK Theatre described the suggested interventions as “investments in a sector that already delivers substantial economic and social returns”, and highlighted how the theatre sector supports creative jobs, attracts international visitors and drives local economic activity.
The report said: “Theatres do not just provide entertainment. They train the writers, directors, designers and performers who power the wider creative industries.
“They also act as civic anchors in communities across the country, sustaining local high streets, supporting thousands of jobs, and providing education and community programmes that reach young people and families every day.”
SOLT and UK Theatre co-chief executives Claire Walker and Hannah Essex said: “Theatres across the UK are entertaining millions of people and producing work that inspires audiences around the world.
“Every day our members are also running education programmes, supporting young people, and bringing communities together through live performance.
“The public appetite for theatre is clear. But the organisations that make it possible are facing rising costs on almost every front.
“The challenge now is ensuring this success is sustainable, so theatres across the country can continue creating new work, supporting jobs and reaching audiences everywhere.”
