The Night Time Industries Association (NTIA), has announced the Institute of Hospitality is supporting their #LeaveNoOneBehind campaign by sharing it with its 16,000 members. The campaign is aimed at advocating for the survival and recovery of their collective membership of over 20,000 businesses in the UK.
This united support comes at a critical juncture prior to the announcement of the Spring Budget on Wednesday 6th March 2024 as the hospitality and late-night economy sectors continue to face unprecedented challenges. Where previously the Government excluded wet lead sales businesses, the NTIA has stood firm on their commitment to leave no one behind or marginalise businesses as was done during the pandemic.
The impact of the ongoing rising costs and financial burdens has led to a dire situation for businesses within the nighttime economy and wider hospitality sector. Since 2020 we have lost over 23,000 businesses, and more than 6,000 establishments have closed their doors in the last year, marking a devastating loss for both the economy and the communities they serve. Alarmingly, the hospitality sector has witnessed a doubling of businesses entering administration during this period, underscoring the urgent need for support.
Despite the limited efforts of the government to provide financial aid, the industries remain exceptionally vulnerable. Escalating operating costs, combined with substantial debts incurred during the pandemic, have left many businesses teetering on the brink of collapse. A recent survey conducted by the NTIA revealed that 7 out of 10 businesses are either barely breaking even or operating at a loss, with nearly half expressing doubts about their survival in the next 12 months.
Michael Kill, CEO of the Night Time Industries Association, endorses the importance of collaborating with the Institute of Hospitality on a pivotal campaign aimed at reshaping the trajectory of the crisis gripping the Night Time Economy and hospitality sectors. He underscores the imperative nature of reducing VAT to 12.5% for all businesses within these sectors, encompassing the entirety of the UK. Emphasizing the urgency of this initiative in safeguarding the survival of these enterprises during tumultuous times, he calls upon the Chancellor to uphold this commitment, stressing the importance of inclusivity in the recovery endeavours, leaving no business behind.
Institute of Hospitality CEO Robert Richardson FIH MI agreed: “It is an incredibly tough economic climate, and our members and wider hospitality industry are continually updating us that they need additional support to help them continue. Without which many fear they will have to close their doors.
“The Institute’s role is to help support our members to prosper through investing in their people’s professional development and encouraging new talent into the industry. An industry we are incredibly passionate about. This campaign and the work of the NTIA will help protect the future of our members and every community across the UK” concluded Richardson.
Sacha Lord, co-founder of Manchester’s Parklife Festival and Warehouse Project, and a prominent figure in the nightlife industry, commented on the #Leavenoonebehind campaign, expressing full support for its objectives. He emphasized the critical need for a reduction in VAT to 12.5% across all hospitality and nighttime economy businesses, not just in Manchester but across the entire UK. Lord stressed the urgency of this measure in ensuring the survival of these businesses amidst challenging times. Furthermore, he urged the Chancellor to stand by this commitment, emphasizing that no one should be left behind in the recovery efforts.
The consequences of inaction are profound, not only for businesses but also for the individuals and families whose livelihoods depend on them. With the cost of living on the rise, discretionary spending, such as enjoying a night out, is under threat as consumers struggle to manage mounting bills.
In response to these challenges, the NTIA is calling on the government to implement urgent measures to support the sector in the Spring Budget, including:
- Implementing a reduced VAT rate of 12.5% across the hospitality, late-night economy, and events sector for the next 12 months.
- Freezing Alcohol Duty for the next 12 months.
These measures are essential to providing businesses with the financial headroom they need to survive and recover. It is imperative that we act now to ensure that no one is left behind and that our vibrant nighttime economy can once again thrive.
