Statement from Michael Kill, CEO of the Night Time Industries Association (NTIA):
“The 1.2% increase in the energy price cap announced by Ofgem today for January-March 2025 compounds the already severe pressures facing the night-time economy. While households will see a modest £21 annual increase, businesses in our sector continue to bear the brunt of skyrocketing energy costs. This, coupled with a looming rise in taxation this April, is pushing many businesses toward a financial cliff edge. The combined impact is forcing operators to make painful decisions, such as reducing operating hours or cutting staff, directly impacting workers who are already struggling with the rising cost of living.
For both the workforce and the industry, this is a double-edged sword. As consumers’ disposable income shrinks due to costs, demand for night-time services drops, placing immense strain on businesses already teetering on the brink. At the same time, the workforce faces fewer shifts and job insecurity as businesses scale back operations to cope with these mounting costs. The ability of many in the night-time economy to recover is slipping further out of reach.
The most frustrating part of this crisis is the stark contrast between the energy companies that are prospering from rising prices and the communities and night-time businesses that are suffering under the strain.
While energy companies continue to see record profits, the businesses that form the backbone of our local economies, and the workers who depend on them, are left to struggle with crippling overheads. Without urgent support and relief, the impact on jobs, businesses, and the wider economy will be devastating, leaving communities without the vibrant night-time culture that is vital to their identity and economy.”
