The End of “Rainbow Capitalism”: How the Fight for Equality in the UK Turned into an Internal War of All Against All

In 2015, 18-year-old Matt left his hometown of Crewe in northwest England. He felt that his homosexuality would never be accepted back home, where the closest thing to a safe space was a tiny makeshift bar hidden behind a dusty curtain at the back of a suburban pub. Eleven years later, Matt returned home and could hardly believe his eyes: Crewe Pride was making its way through the town’s paved streets—a colorful, welcoming, family-friendly festival that drew hundreds of local residents.

But Matt’s happy homecoming masks a deep crisis now facing the Pride movement across the UK and Europe. What began half a century ago as a radical political protest is now caught between mounting pressure from conservative politicians, financial collapse, a panicked retreat by major corporations, and bitter internal disputes over whom the celebration is meant to represent in the first place.

We explore how European Pride events became the perfect target in today’s culture war—and why they are rapidly losing support both from within and without.

From a charity fair to a million-pound Ariana Grande show: How commercialization ruined Pride

Britain’s Pride movement began in London in 1972 as an outright protest. At the time, sex between men in England and Wales had been decriminalized only five years earlier (and remained illegal even longer in Scotland and Northern Ireland), LGBT people were denied jobs and housing, and police regularly raided gay bars.

Pride events grew from the grassroots. In 1985, a group of activists in Manchester organized a modest charity fair on Canal Street to raise money for a hospital ward for patients with HIV and AIDS at the height of the epidemic. Three decades later, that humble fundraiser had become Manchester Pride, a four-day commercial extravaganza with giant stages, global sponsors, and crowds of tourists.

By 2019, the festival had grown so far beyond Manchester’s historic Gay Village that organizers hired American pop star Ariana Grande to perform in a purpose-built arena. Ticket prices soared, sparking outrage among local activists. Matters grew worse when it emerged that Manchester Pride had stopped funding key local charity programs, including HIV funds and free condom distribution.

The outcome was bleak: last year, the company behind Manchester Pride went into liquidation, owing suppliers and performers—including Nelly Furtado—more than £1 million.

Other major cities are facing similar problems. London Pride is regularly criticized for excessive commercialization and the proliferation of corporate floats, while Brighton is buckling under the financial burden of staging huge pop concerts and paying for policing. Brighton residents are not always thrilled either: former city councilor Andy Winter, who championed LGBT rights back in the 1980s, now complains that Pride has turned the city’s parks into paid venues for visiting stars, and its streets into public toilets and dumping grounds for broken glass.

The “rainbow-washing” effect: Why corporations are rushing to remove their logos

In the late 2010s, major brands competed to see who could give their logo the brightest rainbow makeover in June. Critics called this “rainbow-washing,” rightly pointing out that companies’ marketing was often not backed by any real support for the community.

Today, the situation has reversed completely. According to The Guardian, brands’ presence at LGBT events is declining rapidly. Over the past year, social media mentions of Pride by the UK’s ten largest companies fell by a record 92%. A survey by polling firm Ipsos found that the proportion of Britons who believe brands should champion LGBT rights fell from 52% in 2021 to 44%.

Businesses have been spooked by the conservative backlash and aggressive social media reactions from right-wing activists ready to boycott any company for being excessively “woke.” Paul Martin, chief executive of the LGBT Foundation charity, says: “Corporate support for LGBT initiatives is being scaled back around the world. This is creating enormous problems for festival organizers, who can no longer make ends meet.”

Phil Douglas, who organizes Newcastle Pride, confirms: “Brands still want to support us financially, but now they are terrified of having their logos on the posters. Nobody wants to become the target of an online backlash.”

Political storm: the right takes down flags while police refuse to march

A second blow to Pride events came from shifting political winds. In local elections, the right-wing Reform UK party took control of several local councils across the UK. Upon taking office, they immediately began cutting public funding for LGBT events.

• In In Durham, the new Reform UK council’s first move was to remove the rainbow flag from the council building and withdraw a £2,500 municipal grant. Local Pride organizer Mel Metcalfe said the decision made the city’s LGBT residents feel that “they are no longer welcome here.”
• In In St Helens, the council leader ordered officials to cease all engagement with Pride activists and remove themed displays from libraries.

Darren Grimes, deputy leader of Durham Council and one of the most prominent openly gay members of Reform UK, explains it this way: “We achieved same-sex marriage, and that was the final frontier in the fight for equality. Pride has strayed from its noble goal of gay equality and become bogged down in debates about gender identity. You slew the dragon in pursuit of rights, and now you are left alone with a couple of stray sheep.” According to Grimes, government subsidies for LGBT events have become a “cash cow” that merely fuels a culture of perpetual grievance and victimhood.

Support from public institutions is also being withdrawn. Merseyside Police, the fire services and West Midlands Ambulance Service have all formally declined to take part in Pride parades in uniform this year. The reason is a High Court ruling that public servants appearing at such events in an official capacity breaches political impartiality rules.

A rift from within: Why gay men, lesbians and trans people can no longer agree

Perhaps the most painful process for the movement is taking place within the LGBT community itself. Pride has split over attitudes toward transgender issues.

On one side, some gay men and lesbians who hold “gender-critical” views say that Pride events have been completely taken over by the trans agenda. One woman, speaking on condition of anonymity, admitted that she no longer attends festivals because her views on biological sex make her feel unwelcome there.

On the other side, trans people themselves say they no longer feel safe at Pride events. Amid growing stigma and hatred, trans activists are being forced to create their own separate events, such as the Sparkle festival in Manchester. “They are trying to drive us back into the darkness,” says Lauren, a transgender volunteer. Another trans woman admitted that during her trip to the festival, she was literally afraid to leave her hotel room for fear of being attacked in the street.

Security concerns took center stage in 2026 following the tragedy in Berlin, where 21-year-old Abdul Ballut drove a car into a crowd of Pride attendees, killing a woman and injuring 29 others. Organizers must now spend enormous sums on security measures, making large-scale marches financially unviable.

Back to its roots? Why the future of Pride lies in small towns

Paradoxically, the crisis facing giant commercial festivals could make the movement healthier. After Manchester Pride went bankrupt, local business owners and volunteers formed the nonprofit group Manchester Village Pride, which aims to hold a modest, affordable and genuinely community-focused celebration.

“When events began moving from the historic district to huge arenas, that was the first sign that we were heading in the wrong direction,” says Carl Austin-Behan, who is helping coordinate the revamped festival. “It all needs to go back to the people. We do not need to spend crazy millions.”

While major cities argue over budgets and sponsors, the future of Pride is shifting to small provincial towns like Ulverston in Cumbria. The article’s author recalls growing up there as a teenager, fully convinced that he was “the only gay in the village.” But this summer, Ulverston’s streets were decked out in rainbow flags, while local residents warmly welcomed a modest parade accompanied by a brass band.

There, out in the provinces, far from corporate logos, politicians' ultimatums, and endless social media wars, Pride once again becomes what it should be — a simple reminder that everyone has the right to be themselves. According to YouGov polls, 90% of young LGBT Britons aged 16 to 24 still believe that the very existence of Pride Month is extremely important. And that means the celebration will continue — just in a quieter, more intimate, family-oriented, and humane format.