The Night Time Industries Association (NTIA) has submitted a letter of urgent appeal to the Chancellor, outlining a series of critical measures designed to support the UK’s night-time economy and broader business landscape. With inflation, energy costs, and business rates putting immense strain on businesses—particularly small and medium-sized enterprises (SMEs) and independent operators—the NTIA is calling for immediate action to prevent widespread closures and further damage to this vital sector.
Michael Kill, CEO of the NTIA and Vice President of the International Nightlife Association, warns:
“We are at a critical juncture for the UK’s night-time economy and independent businesses. The impact of inflation, rising energy costs, and business rates is crushing operators, many of whom are facing the very real prospect of closure in the coming months. Independent venues and cultural businesses are the lifeblood of our cities and communities, but without urgent government intervention, we risk losing them forever.”
“The Chancellor must act now to extend business rates relief, freeze alcohol duty, support independent cultural businesses and address energy costs, or we will see a mass exodus of businesses by early 2025. The reality is that the old financial models are gone, and with the current trading conditions, many businesses are struggling to adapt. We can’t afford to wait for long-term reform while businesses disappear—we need action now to stabilise the sector and protect the future of our industry.”
The night-time economy is not just an entertainment sector; it is a key pillar of the UK’s economy, social well-being, and cultural identity. From independent music venues and restaurants to pubs and nightclubs, these businesses provide jobs for millions and act as crucial hubs for communities. However, NTIA data shows that nearly half of night-time businesses now report that their operating models are unsustainable. Rising operational costs, reduced consumer spending, and diminished government support are pushing these businesses to the edge.
Sacha Lord, Chair of the NTIA and Greater Manchester Night-Time Economy Advisor, reinforces this urgency:
“The past few months have highlighted just how vital the hospitality and nightlife industries are, not only to the UK economy but to the cultural fabric of the nation. This sector brings people together, fosters community, supports and encourages investment in local areas, and provides jobs to all ages and in both rural and urban areas.”
“Pubs and bars become community hubs after an England match, grassroots music venues nurture bands that can bring an entire nation to a standstill, and independent restaurants earn the country global acclaim. The UK has long been a trailblazer in nightlife innovation—London, Manchester, Edinburgh and other cities have served as blueprints and influenced policies in city planning worldwide for decades—but we are now in danger of being overlooked on this global stage.”
NTIA is calling on the Chancellor and the government to take the following critical actions:
Extension of Business Rates Relief
The NTIA is urgently requesting an extension of the business rates relief scheme beyond 31st March 2025 to help stabilise businesses amid rising costs. It proposes a phased reduction in rates after the extension, allowing businesses to adjust gradually while managing increasing operational expenses, including the full impact of the NLW.
Support for SMEs and Cultural Businesses
A key issue for the NTIA is the impact on non-bricks-and-mortar businesses, especially in the cultural and creative sectors. With 70% of the night-time economy being independently owned, the NTIA has called on the Chancellor for a short-term VAT reduction. The decline in independent venues and cultural events threatens innovators, fuels gentrification, and alters UK high streets
Freeze on Alcohol Duty to Protect the Hospitality Sector
The NTIA urges the Chancellor to freeze on alcohol duty to ease the financial strain on the sector. Inflation is reducing consumer spending and raising costs, with over 50% of consumers highlighting that the price of drinks being a key reason not to go out as frequently, any shift or potential increase in pricing will threaten business viability. Stabilising alcohol duty will help prevent price hikes, maintain customer footfall, and support venue survival.
Energy Cost Crisis: An Immediate and Long-Term Threat
The NTIA has raised urgent concerns about rising energy prices, set to increase again in October. The energy regulator warns that high prices are the new normal. Many businesses, especially in the night-time economy, had hoped for economic change, but with rising costs, they must now adapt to a new trading landscape.
Businesses are struggling to cope with rising costs, the smoking ban, and changes to employment rights. Without immediate relief, many may fail, especially during slow trading periods. The NTIA warns that without urgent action on energy costs and sector stability, many operators might not survive beyond the golden quarter of 2024, risking mass closures in early 2025.
Long-Term Reform is Vital—but Time is Running Out
While the NTIA acknowledges the importance of long-term reforms to business rates, VAT and the planning system, it warns that the slow pace of reform will not come quickly enough for many businesses.
Over the past four years, more than 23,000 businesses in the night-time economy have closed, with 6,000 shuttering their doors in the past year alone. Independent SMEs, which have borne the brunt of these closures, are contracting at an alarming rate, down 13% compared to a 3% reduction among larger, corporate-managed entities.
Without swift and targeted support, the night-time economy—one of the UK’s most innovative and globally recognised sectors—will continue to deteriorate. These businesses not only create jobs and drive local economies but also play a pivotal role in maintaining the UK’s cultural leadership on the world stage.
We urge the Chancellor to act now and take the necessary steps in the Autumn Budget to safeguard the future of the night-time economy. The window for action is closing fast, and without these measures, we will lose a vital part of our communities, our culture, and our economy.
