The Night Time Industries Association (NTIA) has released the findings of a new poll examining the effects of the upcoming tax increases from the Autumn Budget on employees and consumers within the night time economy. Conducted across 200 participants – 100 employees and 100 consumers – the survey offers a snapshot of opinions on financial outcomes, spending habits, and the broader implications for businesses in the sector.
This follows the release of a damning report from KPMG accountants and the Recruitment and Employment Federation highlighting that job vacancies have seen the sharpest fall for 4 years following the Chancellors budget tax raid.
Michael Kill, CEO of the NTIA says:
“While the minimum wage increase is designed to provide financial relief, our recent survey reveals significant concerns from businesses, employees, and consumers within the night time economy. Rising living costs, coupled with increasing pressures on businesses, mean the intended benefits risk being overshadowed by mounting challenges.”
“Today’s damning report from KPMG, showing job vacancies have seen their sharpest fall in four years following the Chancellor’s Budget tax raid on businesses, substantiates the findings of our survey. These developments highlight the real and growing concerns for businesses struggling to stay afloat, employees facing uncertainty, and consumers feeling the squeeze. Policymakers must urgently address these issues and provide targeted support to ensure the resilience of this vital sector amid ongoing economic shifts.”
Key Insights from the poll:
Employee Perspectives
-50% believe rising living costs will negate the benefits of the wage increase.
-75% express concerns that businesses may face financial strain, potentially leading to reduced shifts or layoffs.
-37.5% of staff foresee a slight or significant improvement in their financial situation.
Consumer Sentiments
-34.9% of consumers anticipate struggling to afford nights out due to expected price increases.
-32.6% believe the wage increase will make night time outings more feasible, despite rising costs.
-44.2% expect to go out more frequently, with 34.9% stating they will have slightly more disposable income.
Price Sensitivity
-37.2% of consumers plan to maintain their current frequency of visits despite anticipated price hikes.
-Conversely, 34.9% say higher prices could reduce how often they go out.
Long-Term Financial Stability
-Half of employees (50%) do not expect the wage increase to significantly improve their financial security or savings.
-None of the staff surveyed feel the increase will lead to greater financial stability.
The results reveal critical challenges for the night-time economy. Rising operational costs—compounded by inflation and wage increases—are likely to strain businesses already navigating precarious conditions. Simultaneously, consumer price sensitivity and potential spending reductions could further threaten the sector’s stability.
