Inflation Surprise Sends Ripples Through Business Confidence as Industry Ramps Up Calls for Government Action

UK inflation has surged to 3.6% in the year to June — a sharp rise from May and well above the Bank of England’s 2% target, outpacing expectations. This inflationary jump is set to tighten household budgets and further pressure businesses already grappling with rising operational costs.

Last night, Chancellor Rachel Reeves delivered the most sweeping financial services reforms since 2008 at Mansion House, vowing to scale back risk-averse regulations that “have gone too far.” In a room filled with City elites, Reeves pledged to inject more confidence into UK markets, positioning Britain as a global investment destination once more.

Michael Kill, CEO of the Night Time Industries Association, issued the following statement this morning:
“Today’s spike in inflation is extremely troubling for businesses across the hospitality and night-time economy. While the Mansion House reforms may create a more agile financial environment, we must ensure that such high-level policy changes are felt by the grassroots businesses that form the backbone of our sector.

We are increasingly alarmed by signals that the upcoming economic strategy may once again hinge on a ‘black hole’ narrative, potentially paving the way for further fiscal tightening in the Autumn Budget.

After years of disruption and instability, our industry is preparing to step up its calls for targeted support to relieve mounting tax and cost burdens. Without meaningful action on tax, energy prices, National Insurance, and business rates, many nightlife venues, bars, and late-night operators, already strained by soaring costs, labour shortages, and reduced consumer spending, risk being pushed beyond breaking point.

For these businesses, the promise of economic growth will remain hollow unless accompanied by urgent, sector-specific relief.”

We urge the government to approach the upcoming Budget with a mindset of long-term investment, not short-term cuts, particularly for sectors like ours that play a vital role in economic and cultural life.”

The NTIA calls on policymakers to engage with the sector meaningfully in the months ahead to ensure the next Budget supports sustainable recovery, not regression.