NTIA: ‘Price Gouging’ Focus Ignores Real Crisis – Surging Energy Costs and Taxes Pushing Businesses Over The Edge

Michael Kill, Ceo, Night Time Industries Association (NTIA) has issued a starement following Prime Minister Kier Starmer’s warning of action to prevent “price gouging”.

Keir Starmer said on Monday that his government may consider expanding the powers of the competition regulator to tackle price gouging and profiteering in the energy market, given the ⁠impact of the Middle East conflict.

“We are looking ⁠at measures to deal with profiteering … we might look at what further teeth we can give the CMA (Competition and Markets Authority) to deal with this,” Starmer told a parliamentary committee.

“I want to see more on price gouging or profiteering … we’re actively considering whether the CMA should have additional powers to deal specifically with that, but at the moment we’re making sure they’re focused on anti-profiteering.”

Micheal Kill accused the government of “missing the bigger picture: “ “The renewed focus on ‘price gouging’ risks missing the bigger picture entirely. This is not a new issue, it is an ongoing problem that should have been tackled years ago. Instead, it is now being brought forward at a time of heightened global instability, creating the illusion of action while the underlying cost crisis continues to intensify.

“Businesses and consumers are already bracing for further increases. We are facing a surging energy cost crisis driven by global tensions, with Government itself preparing for prolonged disruption. Yet there remains no clear, credible plan to protect households or businesses from what comes next.

“For our sector, the pressure is relentless. Business rates bills are due to rise from 1st April, operational costs continue to climb, and margins are being pushed to breaking point. The reality is that many venues are making impossible decisions simply to stay open. This is not about profiteering at the grassroots level; it is about survival.

“We are also seeing a clear disconnect in policy. On one hand, there is talk of cracking down on fuel profiteering and strengthening regulatory powers. On the other, there is little clarity on what meaningful support will replace previous interventions, particularly when there is no appetite for broad-based support due to public finance constraints. Businesses are left asking: where is the plan?

“We must also be honest about the role of taxation and systemic cost pressures. Energy levies, rising taxes and wider economic burdens are all feeding into the prices faced by businesses and consumers. While Europe is seen to have acted more decisively, with longer-term strategies and lower VAT frameworks to support businesses, the UK continues to struggle with indecision and short-termism. This lack of clarity is compounding the pressure on already vulnerable sectors.

“At the same time, the impact on employment is becoming critical. As costs rise, businesses are forced to cut back, often starting with entry-level and youth roles. Yet we continue to hear ambitions around growing youth employment. The reality is stark: if businesses cannot afford to operate, they cannot afford to employ.

“The question the industry is asking is simple, where does this end?

“If further price shocks are coming, as all indicators suggest, what will the Government do to prevent a deeper cost crisis? How will it protect vulnerable businesses already operating on the edge, and households already stretched to their limits? And how will it restore confidence in an economy that feels increasingly uncertain week to week?

“The night-time economy has shown resilience through years of disruption, but resilience has its limits. What is needed now is decisive action, a clear, joined-up strategy that tackles the root causes of rising costs and gives businesses and the public the confidence they desperately need.

Without that, this crisis will not ease, it will escalate.”