Businesses across the country are bracing for a financial blow as the Government moves ahead with tax hikes – despite repeated warnings of their devastating impact. With an increase in Employer National Insurance Contributions (NIC) and a sharp reduction in Business Rates relief, many struggling businesses face an existential threat.
Industry leaders report that operating costs have already surged by an unsustainable 30-40% in recent years. The latest tax increases will pile on an additional burden of between £30,000 and £80,000 per business, pushing many to the brink. The consequences will be dire: closures, job losses, and long-term damage to the economy.
To survive, businesses have already made drastic cuts – reducing staff, limiting hours, and scaling back services. This latest financial hit could be the final push into insolvency for many. The sector is caught in a vicious cycle: as costs rise, fewer people can afford to go out, leading to declining trade. With businesses unable to absorb the spiralling expenses, the night-time economy is under threat like never before.
A flash poll conducted among over 200 businesses underscores the gravity of the situation. Nearly half (46%) of respondents expect their workforce to shrink within the next 12 months, while 62% anticipate having to reduce staff numbers and operating hours. The overwhelming majority – 85% – identified rising operational costs as their biggest economic challenge. As a result, 88% of businesses plan to increase their prices in the next year, with more than half (56%) expecting price hikes of between 5-10% just to remain viable.
Michael Kill, CEO of the Night Time Industries Association, issued a stark warning: “The Government is sleepwalking into disaster. Businesses have cut everything they can – jobs, hours, services – just to survive, and yet they’re still being punished. These tax hikes will be the final nail in the coffin for thousands. The Government has refused to listen, and now they are actively pushing businesses into collapse. If they do not act now, they will be responsible for the destruction of an entire sector, the loss of countless jobs, and the irreversible decline of our nightlife economy.”
The impact will be widespread: businesses will shut down, communities will suffer, and thousands of jobs will be lost. The Government’s failure to provide support has placed an already fragile sector in further jeopardy.
The message from business owners is clear: time is running out. Immediate action is needed to prevent lasting damage. The Government must urgently reconsider these tax increases or introduce alternative relief measures before it is too late.
Without urgent intervention, the night-time economy faces an unprecedented crisis – one that will leave lasting scars on businesses, workers, and communities alike.
Research reveals Pubwatch schemes are key to tackling disorder and creating safer drinking environments.
Pubwatch schemes are key to reducing alcohol-related crime and improving the safety of the evening economy, a new independent study commissioned by voluntary organisation National Pubwatch (NPW) has confirmed.
The research, conducted by Leeds Beckett University and supported with funding from JD Wetherspoon and Diageo, has shown that 86% of licensees, staff, police and those working within organisations such as local authorities, believe that Pubwatches help to create safer drinking environments.
Pubwatches are groups of licensees who voluntarily work together, with the support from local partners such as the police, to address crime and anti-social behaviour and create a safer night time economy for staff and customers.
Over half (53%) of those surveyed stated they had actually witnessed a decrease in alcohol-related disorder and anti-social behaviour since the introduction of a Pubwatch scheme. Importantly, over two-thirds (68%) agreed that Pubwatch activities increased staff, customer and community safety.
The positive impact of Pubwatches was reflective in the views of licensees with an overwhelming majority (90%) saying they were influenced to join a Pubwatch scheme to create a safer environment, while 79% cited the benefits of networking with authorities, such as the police and local authorities.
The research also showed that over 90% of all respondents would recommend to others to join a scheme. While, 86% believe that local schemes encouraged the sharing of good practice, a similar proportion (85%) said that the schemes helped to create better partnerships between the licensed trade and official bodies.
Banning orders, where an individual is collectively banned from premises within a local Pubwatch, was seen as important tool in helping to combat crime and disorder, with over 90% of licensees supporting their use.
The research also highlighted the important role of NPW, the voluntary organisation that supports local Pubwatches, with 92% agreeing that it was important for NPW to provide a voice for the licensed trade on issues regarding crime and violence. And 90% agreed it was important for NPW to provide advice and information to support new and established local Pubwatch schemes.
NPW Chairman Steve Baker OBE said: “These are phenomenal results showing the real impact of local Pubwatches in fighting crime and disorder and providing safe drinking environments in the evening economy.
“We would like to thank JD Wetherspoon and Diageo for their support in conducting this research, which is so crucial in showing the real impact that Pubwatches are continuing to have across the country.”
He added: “NPW will continue to support Pubwatch schemes across the country and lobby on their behalf. It has been extremely valuable to find out the real positive impact that NPW as a voluntary organisation is having in helping to support the schemes.”
Wetherspoon’s Legal Director, Nigel Connor, said: “Wetherspoon has been a supporter of Pubwatch for many years, and our pubs are members of 532 local schemes throughout the country.
“In our experience, in towns and cities where there have been problems of anti-social behaviour, the setting up of a Pubwatch has improved safety and security not only in licensed premises but also in these areas more generally and has helped the police to bring crime down.”
He added: “We are pleased that the evaluation report by Leeds Beckett University, which Wetherspoon along with Diageo helped support, shows that this is the case. We hope it will see the setting up of more schemes going forward.”
Catharina von Franck, Commercial Director – On Trade at Diageo GB, said: “The pub is an iconic symbol of British culture. Up and down the country they are at the heart of our communities, playing a central role in how we celebrate and connect.”
“Our industry has a collective responsibility to ensure that everyone can celebrate safely. I’m very proud that Diageo has been able to support NPW in this important research, and in doing so play a small role in supporting an organisation that strives to create safer drinking environments for all.”
To read the full report:
https://nationalpubwatch.org.uk/wp-content/uploads/2025/02/NPW-Final-Report-PDF-20-02-25.pdf