NTIA Marks First Year Of Labour In Power With Blistering Critique – Accusing Government Of Failing Nightlife!

The Night Time Industries Association (NTIA) has issued a scathing review of the Labour government’s first year in power, describing it as a “catastrophic cliff edge” for businesses within the night time economy. The association warns that the sector is being driven toward collapse due to government inaction, broken promises, and systemic policy failures, with urgent challenges being met by long-term strategies that offer no immediate relief.

Michael Kill, CEO of the NTIA, said: “This past year has been a devastating chapter for the night time economy. Labour entered government on the strength of clear promises to reinvigorate our high streets, uplift cultural and grassroots venues, and protect the jobs and livelihoods of those in nightlife, hospitality, and entertainment. Yet those pledges have not just fallen short,  they’ve been cast aside. Instead of delivering tangible action and a decisive strategy to stabilise and grow the sector, we’ve been met with indecision and distant, long-term proposals that fail to address the immediate crisis facing our industry.”

Missed Opportunities 

Kill described the past year as a litany of missed opportunities. Since July 2024, the NTIA has made repeated attempts to work collaboratively with government ministers and local authorities to address the needs of nightlife businesses, yet time and again, critical interventions have either been delayed, diluted, or quietly discarded.

“Labour had the opportunity to reset a decade of neglect. Instead, we’ve seen repeated failures to deliver comprehensively on business rates reform, no targeted support for venues facing skyrocketing energy and operational costs, the introduction of additional regulatory pressures through the forthcoming employment rights bill and a glaring lack of recognition for the role our sector plays in local economic regeneration and national cultural life.”

Tax Hikes

To make matters worse, the Government’s tax hikes introduced on 1st April 2025 pushed many already fragile businesses over the line. The sharp and ill-timed increase in costs compounded an already unsustainable operating environment, with many venues now either barely breaking even or actively losing money, with many independent businesses burdened with trying to find between £30-£80k in additional operating cost. The NTIA warns that this financial tipping point will accelerate closures in the second half of the year.

“The swift movement of the dial from 1st April, with tax increases and rising employer contributions, was a devastating blow. For many, it was the final straw. These weren’t marginal businesses clinging on, these were viable, well-run venues that simply couldn’t absorb another wave of pressure.”

Urgent Issues Met With Long Term Solutions

A central criticism from the NTIA is that although the government offers long-term solutions the problems are much more are urgent and immediate. Businesses facing closure this quarter cannot wait years for incremental licensing reform or regeneration initiatives that may never reach nightlife zones.

“We’re not being offered lifelines, we’re being handed policy wishlists with 2030 timeframes while businesses are closing today. This is a crisis, and it’s being met with complacency or worse, negligence.”

Decline of Grassroots, Independent Businesses and Creative Sectors

One of the most alarming trends over the past year has been the decline of grassroots and independent businesses. The NTIA has recorded a 15.8% contraction in the independent night time economy sector, a devastating figure that reflects the collapse of vital community institutions. Independent operators, who once formed the creative and cultural backbone of the UK’s nightlife, are being pushed out at scale, unable to cope with rising fixed costs, post-pandemic debt, and zero access to meaningful financial support.

“The journey for grassroots and independent businesses over the past year has been defined by uncertainty and isolation. These are the venues and people who took all the risks, who brought creativity and community to our cities, and they’ve been left to fend for themselves with no strategic backing from the Government.”

The recent announcement of government funding for the creative industries, alongside the DCMS Creative Industries Sector Vision as part of the wider industrial strategy, lacks clarity in its transactional intent.

“In today’s economic climate, any funding is welcome, but the Arts Everywhere Fund promotes a narrow, classically-focused narrative, with little relevance to contemporary music or the night time economy. Likewise, the £30 million Music Growth Fund, while positive, is a drop in the ocean. To meet the scale of need across the UK’s creative sectors, far greater ambition, investment, and clarity of purpose are urgently required.”

Structural and Regulatory Failings

In addition to financial pressure, the late-night economy is being suffocated by structural and regulatory failings. Operators continue to suffer from a lack of basic supporting infrastructure, late-night public transport is inconsistent or absent, street-level sanitation and lighting are insufficient, and venue owners are left dealing with rising anti-social behaviour without adequate policing support. This is further compounded by licensing regimes that Kill describes as “outdated, inconsistent and punitive.”

“We are navigating a licensing framework that is restrictive at best, hostile at worst. Local authorities and Police are risk-averse, over-cautious, and lacking any joined-up thinking when it comes to nightlife. Add to that the absence of police visibility on our streets and failing night-time infrastructure, and you have a sector being set up to fail. Crucially, the political will for true change in terms of licensing reform is yet to be seen, without bold, coordinated action at the highest levels of government, the barriers facing the sector will only deepen.”

Call for Government to Rule Out Further Tax Rises

Following last night’s chaotic developments surrounding the Welfare Bill, and with the cost base for businesses continuing to rise without a clear, sustainable plan, the NTIA is urgently calling on the Government to rule out further tax increases. Any additional fiscal burden would have devastating consequences for an already fragile industry.

The sector is demanding a firm commitment from the Chancellor: no new or increased taxes, no further policy or legislative pressures, and an environment where businesses can recover, contribute, and collaborate, not merely serve as a convenient source of government revenue.

“Looking ahead to the second half of 2025, we urge the Government to re-engage meaningfully with our industry. This requires not just promises, but direct action in the Autumn Budget, by committing to creating financial headroom for the sector, strategic and targeted relief for the most vulnerable of businesses, and licensing reform which is enabling and permissive, allowing us to trade. The long term strategy is important, but please recognise that if the immediate issues are not dealt with many businesses will not see the benefit of these long term reforms.”

“We are approaching a serious cliff edge. This is no longer just an economic debate, it’s about preserving our identity, our communities, and our culture. If the Government fails to act swiftly, the consequences will be irreversible. We risk dismantling one of the UK’s most vibrant, inclusive, and globally celebrated industries.”