Half of Night Time Venues Face 50%+ Business Rate Rises as 2026 Operating Costs Become Unsustainable
Britain’s nightclubs, live music venues, and late-night entertainment spaces are warning that 2026 will bring unsustainable operating costs, with nearly half of venues expecting business rates to rise by 50% or more, according to a flash poll of 345 nightlife business operators.
Rising rates come on top of already elevated costs, including wage increases, national insurance hikes, alcohol duty, and other tax pressures, placing venues in a position where staffing, pricing, and opening hours may need to change just to remain viable.
“We’re not talking about growth, we’re talking about survival,” said one nightclub operator. “Staff livelihoods, community spaces, and nights out are all at stake if costs keep rising like this.”
Costs on the Rise
Operators report that running costs are 30–40% higher than in 2020, driven by:
- Two Autumn Budgets increasing tax pressures
- Two minimum wage rises
- Lower thresholds for Employer National Insurance contributions
- Alcohol duty increases
- Business rates revaluations pushing many venues into higher multipliers
Currently, night-time venues enjoy 40% business rates relief, but this ends in 2026. Combined with higher rateable values, city-based nightclubs and late-night venues are facing what the sector describes as a “perfect storm” of unsustainable operating costs.
Flash Poll Highlights
- 50% of venues expect business rates to rise by 50% or more
- Almost 20% face increases of 76–100%
- 87% plan to raise prices for customers
- 75% anticipate cutting staff hours or jobs
- Up to 15% could see their long-term viability challenged without support
These pressures are translating into practical trade-offs for operators, including reduced opening hours, higher prices, and fewer opportunities for emerging artists and performers.
Michael Kill, CEO of the Night Time Industries Association (NTIA), said: “The night-time economy is managing significant cost pressures. Transitional relief will help, but it is temporary. The recent revaluation has pushed many city nightclubs into higher multipliers, even as wage, national insurance, alcohol duty, and other tax costs have risen. Without targeted support, venues will face difficult decisions around staffing, pricing, and opening hours.”
The NTIA is calling on government to:
- Introduce targeted business rates relief for night-time economy venues
- Conduct revaluation reviews that reflect the realities of late-night operations
- Protect the economic and cultural contribution of night-time venues to local communities, by lowering VAT and reversing the NIC Employers contribution thresholds.
“The night-time economy supports jobs, tourism, and local vibrancy,” Kill added. “With proportionate policy measures, these venues can remain sustainable and continue to enrich communities and city life.”