Nightlife sector facing a ‘death sentence’ following budget

The nightlife sector is in “severe jeopardy” following last month’s budget, the Night Time Industries Association (NTIA) has said.

 

A survey by the industry body saw 90% of businesses describe the financial impact as "devastating", with 40% at risk of closure within the next six months unless urgent support is provided.

 

Chief executive Michael Kill, chief executive of the NTIA, said: “The autumn budget has effectively signed a death sentence for many night-time economy businesses across the UK.

 

“This sector, which contributes over £136b to the economy and employs over two million people—especially young people under 30—is being pushed to the brink.

 

“The government’s ‘pro-growth’ claims ring hollow in the face of policies that are, in reality, crippling the very industries that drive economic vitality, social cohesion and cultural richness.”

 

Kill said businesses had already experienced cost increases between 30% and 40%, while simultaneously seeing a decline in consumer spending.

 

The survey showed that 75% of venues expected their annual costs to increase by more than £30,000 due to the combined impacts of cost pressures, National Insurance contributions, alcohol duties and the minimum wage. Some businesses said they faced annual hikes surpassing £80,000.

 

Additionally, 88% of respondents said the budget would significantly harm their profitability, with many fearing imminent closure.

 

More than 90% said they would be raising prices, cutting staff hours, reducing operational hours and delaying essential investments to offset the impact.

 

A total of 92% said job cuts would follow, potentially leaving thousands of people without employment.

 

The NTIA has called on the government to prevent business closures and job losses by expanding business rates relief, providing energy subsidies and reconsidering alcohol duty and employer National Insurance contribution rises.