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A new levy on arena and stadium concert tickets is the best way to support struggling local music venues, a group of MPs has recommended.

In a report published on Saturday, the cross-party Culture, Media and Sport committee also suggested a cut in VAT to help grassroots venues.

The number of small music venues in the UK declined by 13% last year - accounting for as many as 30,000 fewer shows - according to the Music Venue Trust (MVT), which said the sector had taken a "battering".

The Trust has been campaigning for £1 to be added to tickets for arena and stadium shows to subsidise the pubs and clubs where many headline acts start out.

The committee launched an inquiry into the grassroots music scene last year, with some artists warning it about a "cost of touring crisis".

The MPs' resulting report also suggested the launch of a new fan-led review of live music to assess the challenges.

Dame Caroline Dinenage MP, the committee's chairwoman, said "the ongoing wave of closures [of grassroots venues] is not just a disaster for music, performers and supporters but also puts at risk the entire live music ecosystem".

This was echoed by the MVT, whose founder, Mark Dayvd, thanked "the thousands of music fans" who had supported its campaign.

"It has taken much longer than any of us would have liked to get the positive change we all wanted to see," he added.

The MVT said financial stress had led 125 UK venues to abandon live music in 2023, with half of those shutting entirely.

Rent hikes and increases in utility bills were cited as the main problems for venue operators.

The House of Commons committee's report said adding a levy to arena and stadium gig tickets would help the industry immediately.

The MPs emphasised that although costs would be added to tickets, the levy itself should be covered by arena and stadium owners and not fans.

If those in the industry do not reach an agreement for a subsidy by September, the government should intervene to make it a legal requirement, the committee added.

VAT relief should also be brought in on a temporary basis, with the cut based on venue capacity.

David Martin of the Featured Artists Coalition and Annabella Coldrick of the Music Managers Forum said also welcomed the report.

"Most important is their recognition of the 'cost of touring crisis', and that the benefits of a ticket levy must flow down to artists, managers, and independent promoters - as well as to grassroots music venues," they said.

"The entire ecosystem needs support. While we still believe this mechanism should be mandatory, the clock is now ticking to get a process in place before September 2024."

John Drury, chair of the National Arenas Association, said: "We are reviewing the report and discussing with members next week."