The Night Time Economy, a crucial sector in the UK, is facing an urgent crisis and requires immediate support from the government. In the upcoming Spring Budget, we are calling for an inclusive VAT cut for all businesses within the night time economy and hospitality sectors.
A VAT cut is the most effective tax reduction measure to provide immediate relief and support to businesses across the night time economy and hospitality sectors. However, we must not unfairly discriminate against any businesses, as they did with wet lead businesses during the pandemic. We strongly urge the government to deliver a VAT cut which would include admission tickets, food, soft drinks and alcohol.
It is important to note that reducing VAT on alcohol does not mean these businesses will act irresponsibly. On the contrary, they are well-regulated and understand the importance of responsible alcohol service. The financial constraints faced by these businesses leave little room for excessive promotions or irresponsible practices. The Government is well aware of the stringent regulations already in place.
The night time economy is currently navigating through unparalleled challenges. Businesses are struggling to stay afloat due to soaring debt and the excessive cost of operating. Previous VAT cuts resulted in the exclusion and marginalisation of many businesses, hindering economic recovery. To avoid repeating these mistakes, the government must ensure that the proposed VAT cut for the night time economy is all-encompassing. This comprehensive approach is the only viable solution to support the entire sector.
Michael Kill CEO NTIA Says “A comprehensive and inclusive VAT cut is absolutely essential to prevent the collapse of our industry. As the CEO of NTIA, I have dedicated the past two weeks to engaging with businesses on a daily basis, actively listening to their challenges and concerns. It deeply saddens me to witness the devastating impact this crisis has had, with businesses closing down, individuals losing their life savings and stability, families enduring financial struggles, and many people experiencing mental health issues.”
“It is important to underscore that our industry is not flourishing as some may suggest. Rather, it is predominantly in crisis, with the majority of businesses barely able to survive. What is even more disheartening is that once again, the industry hangs on every word from the Government, leading up to the budget on the 6th March, as it may significantly impact thousands of peoples lives and financial stability.”
“The Government needs to clearly communicate its intentions and show some level of consideration for all business owners and employees who may face further challenges in the year ahead.”
The Night Time Economy is a significant contributor to the UK economy, offering employment opportunities, fostering creativity, and enriching our cultural landscape. Without immediate government intervention, we risk losing countless businesses, jobs, and the vibrancy that this sector brings.
We implore the government to act swiftly and acknowledge the critical situation faced by the night time economy. By implementing an all-encompassing VAT cut, including tickets, food, soft drinks, and alcohol, while maintaining responsible regulation, the government can provide a lifeline to businesses and safeguard the future of this vital sector.