Britain’s Late-Night Economy Could Lose 10,000 More Businesses and 150,000 Jobs by 2028

Industry Leaders Warn That Without Intervention, Hundreds of Thousands of Jobs, Businesses and UK Cultural Identity Are at Risk

Britain’s late-night economy is under severe strain. Rising costs, shifting consumer behaviour, and the potential for higher taxation in the upcoming Autumn Budget are pushing venues to the edge. Without urgent action on 26th November, 10,000 more businesses could close by 2028, putting 150,000 jobs at risk.

The crisis is particularly acute for grassroots and independent venues, which form the backbone of the UK’s creative and cultural ecosystem. These venues provide essential platforms for electronic music, counterculture businesses, festivals, and clubs, fuelling nightlife tourism and underpinning the nation’s cultural identity. Closure of these sites risks eroding local culture, creative careers, and the social fabric of towns and cities.

The latest Night Time Economy Market Monitor from CGA by NIQ and the Night Time Industries Association (NTIA) highlights the scale of the crisis:

• Late-night venues – bars, nightclubs, casinos, and other high-tempo hospitality sites – have fallen 28% since March 2020, with 4.6% of that decline in the last 12 months alone
• Independent venues are hardest hit, down 30.6% since 2020, more than double the decline among larger operators

Access to Report : https://storage.googleapis.com/ntia-hosted-pdfs/night-time-economy-market-monitor-nov-25.pdf

Rising Operating Costs and Potential Budget Tax Increases Threaten Survival

The sector is being squeezed from all angles:

• Operating costs – energy, supply chains, and staff costs, particularly NIC hikes, have crippled operators
• Indirect pressures, such as the potential for higher fuel prices, alcohol duty, taxi fares, and gambling levies in the Autumn Budget, could reduce consumer disposable income and increase costs, limiting late-night spending

Many venues warn that, if the Budget is unfavourable, they may have no choice but to hand back keys or close doors at the start of the New Year

Projected Losses if No Intervention

• 7,000–10,000 additional venues could close by 2028
• A 15–20% contraction on top of the 28% already lost since 2020
• 150,000 jobs in hospitality, live music, events, security, and support industries at risk
• Grassroots and independent venues will suffer the worst losses, threatening cultural infrastructure and creative industries

Michael Kill, CEO of NTIA and Vice President of the International Nightlife Association, said:
“For too long, government policies and rising costs have suppressed a vital part of Britain’s cultural and social life. The late-night economy is an engine for jobs, tourism, and community vibrancy, and grassroots venues are at the heart of this ecosystem. These pressures are punishing young people, limiting job opportunities and social mobility, and disproportionately affecting independent operators. Local communities and economies suffer when venues close,  streets become quieter, supply chains are disrupted, and essential jobs are lost. Beyond the economic consequences, these closures are eroding the social and cultural identity of the UK. The Chancellor must act in the Autumn Budget to protect this sector before it is too late.”

Sacha Lord, Chair of NTIA, said:
“The late-night economy is at a tipping point. Rising operating costs, NIC hikes, and the potential for further taxes in the Budget are already hitting both operators and consumers. Without immediate action, grassroots and independent venues will disappear, jobs will be lost, and a serious blow will be felt across local economies and communities. Many venues warn that an unfavourable Budget will force them to hand back keys or close at the start of the New Year. This sector isn’t just about nightlife, it underpins culture, tourism, and the social fabric of towns and cities. The Chancellor must step in to ensure these venues survive and continue to contribute to Britain’s economic and cultural life.”

Evening Economy Outperforming Late-Night

While late-night venues continue to close, the evening economy is performing better:

• Licensed premises operating earlier in the day are up 0.9% year-on-year, now only 7.4% smaller than pre-pandemic
• Demand for hospitality still exists, showing the late-night sector is structurally under pressure, not a collapse in consumer demand

Call to Action

The NTIA urges the Chancellor to use the 26th November Autumn Budget to:

1. Avoid introducing further direct or indirect taxes that impact operators or reduce consumer disposable income
2. Introduce targeted tax and business rates relief for late-night venues, especially grassroots and independent sites
3. Invest in safe late-night transport, urban infrastructure, and public safety
4. Recognise the late-night economy as critical national infrastructure, supporting jobs, tourism, culture, and communities

Michale Kill added: “Britain’s nightlife drives jobs, culture, tourism, and urban vibrancy, and grassroots venues are key to the nation’s electronic music, festivals, and counterculture businesses. The Chancellor’s actions on 26th November will be decisive: without urgent intervention, 10,000 businesses and 150,000 jobs could be lost, leaving shuttered venues, quieter streets, and a weakened creative economy. Many operators warn that, if the Budget is unfavourable, they may have no choice but to hand back keys or close doors at the start of the New Year.”