Night-Time Economy Needs Space to Recover, NTIA Tells Chancellor

Following Chancellor John Healey’s first major economic speech, in which he placed growth, investment and wealth creation at the heart of the Government’s agenda, the Night Time Industries Association has welcomed his optimism, but warned that further tax increases would place already vulnerable sectors under even greater pressure.

Mr Healey spoke of Britain “turning a corner” and creating the conditions for businesses to invest and make a profit., and has said boosting economic growth will be his defining mission as chancellor as he warned Labour had to “be honest” about the need to control public spending at next month’s budget.

In his first big speech since taking the job in July, Healey said the top priority for his 28 October budget would be to support stronger growth across the UK while sticking firmly to the government’s fiscal rules.

However, his refusal to rule out further tax rises ahead of the Budget will add to the uncertainty facing the night-time economy

“I want to be the chancellor that gets things done and I want to see growth driven from more places across the UK,” he said.

Michael Kill, CEO of the Night Time Industries Association, said: “We welcome Chancellor John Healey’s quiet confidence in Britain’s potential and his recognition that successful, profitable businesses are essential to delivering growth.

“However, the continuing rhetoric around possible tax rises will concern businesses in sectors already facing exceptional pressure. The night-time economy needs room to breathe. After almost six years of disruption, rising costs and mounting tax burdens, the sector is now some 23,000 businesses lighter.

“There must surely be recognition within the Treasury that every business lost means jobs lost, investment cancelled and tax revenue permanently removed from UK plc. Business closures do not repair the public finances. They shrink the economy and reduce the revenue available to fund public services.

“Our sector is not asking to be protected from commercial reality. It is asking for a fair and stable operating environment in which viable businesses have the confidence to invest, employ people and grow.

“If John Healey and the Government are serious about turning the corner, the forthcoming Budget must translate the Chancellor’s rhetoric on growth into practical action. That means easing the cumulative tax and cost burden on the night-time economy, providing long-term clarity and giving this vital sector the room it needs to recover.

“The night-time economy can play a powerful role in restoring growth across the country, but only if the businesses at its heart are given the chance to survive and succeed.”