Closures In Britain’s Late-Night Venues Reach All-Time High With One In Four Businesses Lost Since 2020

The Night Time Industries Association (NTIA) has raised concern about the contraction in Britain’s nightlife scene as new data from the latest Night Time Economy Monitor reveals one in four late-night venues have shut their doors since 2020 – a total of nearly 800 businesses, leaving just 2,424 late night venues still operating.

According to the research, compiled by the NTIA and CGA by NIQ, losses have stepped up over the past three months with three net closures of venues a week, creating what the NTIA warns are ‘night-time deserts’ across the country.

The late-night sector has contracted 26.4% since March 2020, compared with the 14.2% contraction seen across the wider hospitality sector.

“We’re witnessing the loss of important social infrastructure from our towns and cities. Nightclubs and late-night venues are more than just places to dance – they’re cultural institutions, economic engines and cornerstones of community life,” said Michael Kill, CEO of the NTIA.

The decline in wider night-time economy venues is evident across all UK regions, although Wales and London are among the hardest hit, seeing declines of -16.8% and -15.3% since 2020.

Across the UK’s major cities, Birmingham has experienced the largest decline in late-night venues, at – 27.5%, while Greater London’s late-night venue numbers have dropped 20.8%. The capital now has 343 late-night venues, compared with 433 in March 2020. Edinburgh has seen a gradual decline in late-night venues, falling 13.0% since March 2020 to a total of 47 in June 2025, while Liverpool has also seen a steady decline, dropping 13.9% to 93 late night venues in June 2025.

“The closure of one in four late-night venues changes the UK’s cultural landscape. Small venues nurture new talent, fuelling the success of globally renowned artists and the creative economy. You don’t get Ed Sheeran, Dua Lipa, or Oasis without small venues.

The collapse of independent venues puts the entire night-time economy at risk,” added Michael Kill.

“These closures have coincided with soaring operational costs—including increases to minimum wage and National Insurance in April—and a continued shortfall in post-pandemic support for independent operators. Although we have seen growth in venues such as themed bars and cocktails bars, our nightclubs and traditional late-night bars are cultural assets that we’re in danger of losing for good.” Said Karl Chessell, Business Unit Director – Hospitality Operators and Food, EMEA at CGA by NIQ

Sacha Lord Chair of the Night Time Industries Association said:
“These figures are deeply worrying. Night-time venues are not just businesses—they are cultural hubs, training grounds for artists, and vital contributors to local economies. Losing one in four since 2020 risks creating ‘night-time deserts’ and costing more jobs across the sector. We need urgent action: a VAT cut, business rates reform, and a reversal of NIC thresholds to protect venues, sustain employment, and ensure our cities remain vibrant after dark for generations to come.”

NTIA Call to Action #StopTheDancefloorTax – Three Key areas need to be addressed to Stop the decline in night time economy and loss of jobs

• Cut VAT for Hospitality & Night-Time Economy
  Permanently reduce VAT for venues, bars, and clubs to boost recovery and promote growth and investment.
• Reinstate National Insurance Thresholds for Employers
  Restore National Insurance contribution thresholds for hospitality and night-time economy businesses to ease hiring pressures.
• Sustain Business Rates Relief for Night Time Economy Sector Until Meaningful Reform is Delivered”
  Maintain business rates relief for the  Night Time Economy sector until a comprehensive and fair reform of the rates system is implemented.

“The time to act is now,” Kill added. “We must stop the silent slide into night time deserts before the damage becomes irreversible.”