“3% Inflation Stability Offers Hope, But Uncertainty Still Dominates the Night Time Economy,” says NTIA

The UK inflation rate remained at 3% in the year to February, according to The Office for National Statistics’ (ONS), however, these figures were collated before the Middle East conflict when data suggests the price of petrol was at its lowest since June 2021.

Pump prices for petrol and diesel have since increased considerably following a surge in wholesale oil prices as the conflict continues.
This is expected to have a knock-on effect for energy prices in particular, affecting the hospitality and licensed on-trade already battling high energy costs, meaning that predicted falls in inflation this year are now not likely to happen.

Michael Kill, CEO of the Night Time Industries Association said: “Inflation holding at 3% is a positive signal and will give many people a degree of confidence after a prolonged period of economic pressure. However, that optimism is tempered by the ongoing volatility caused by cross-border conflicts, continued pressure on disposable incomes, and persistently elevated operating costs—all of which remain firmly at the top of people’s concerns.

With the 1st April tax increases fast approaching, this will be a key moment for the broader industry. Business rates, in particular, remain unresolved for the wider hospitality and night time economy sector and continue to place significant strain on operators already navigating a challenging environment.

This uncertainty is resonating across the sector – impacting confidence, job security, and forcing businesses to make critical decisions about their future. Ironically, the only predictable element right now is the unpredictability of the landscape, making long-term planning incredibly difficult.”