Michael Kill, CEO of the Night Time Industries Association, said:

“The fall in inflation from 2.8% to 2.6% is a welcome and positive step, even though it remains above the Bank of England’s 2% target. It offers some encouragement that the intense financial pressures facing households and businesses may be beginning to ease.

“For the night-time economy, falling inflation could help restore consumer confidence and support spending across hospitality, entertainment and culture. However, venues continue to face unsustainable pressures from energy, staffing, taxation, business rates and supply-chain costs, while many consumers still have limited disposable income.

“The new government, with Prime Minister Andy Burnham at its head, must seize this opportunity to rebuild confidence. Its focus on the cost of living and economic growth must be matched by decisive action to reduce the cost of doing business.

“This is a moment for cautious optimism, but progress cannot be taken for granted. With targeted support, greater certainty and a genuine partnership with industry, the night-time economy can drive investment, employment and regeneration across the UK.”