NTIA Criticises Autumn Budget Impact On Fragile Nightlife Ecosystem: Extended Tapered Business Rates Relief Extension Insufficient Amid Challenging Sector Tax Hikes.
The Night-Time Industries Association (NTIA) criticises the Government, despite the Chancellor extending business rates relief for night-time economy businesses in the Autumn Budget by an additional two years at a reduced 40%, halving the relief, with the benefit negated mainly by a series of tax hikes that threaten the sector’s financial stability. The net increase in alcohol duty, despite a draught duty reduction, and a rise in employer National Insurance Contributions (NIC) to 15% and shifts in thresholds, imposing significant costs on businesses. Already grappling with high labour expenses, many venues—particularly independent businesses vital to local culture – are under even greater pressure to survive in an increasingly fragile economic environment.
Long-term reforms in planning, employment rights, and worker exploitation are transformative for the sector, though they bring challenges to an already delicate ecosystem. Given current inflationary pressures, some of the businesses we represent may not survive the outcomes of these reforms.
The combination of the tapered business rates relief and rising tax burdens leaves thousands of venues across the UK reevaluating their financial models, with consequences extending far beyond the businesses themselves. The night-time economy contributes billions to the national economy and supports crucial cultural and community spaces that promote social well-being and community safety. In failing to address the unique pressures faced by these businesses, the government’s budget places an irreplaceable sector on a precarious edge.
The industry operates in a highly challenging environment and within a fragile ecosystem. The current budget lacks the balanced and targeted support needed to help these businesses endure escalating financial pressures, protect jobs, and sustain community hubs essential to the UK’s cultural landscape, but more importantly, to start the recovery process and ultimately grow!
NTIA CEO Michael Kill States:
“We are in one of the toughest trading environments the UK has seen in decades for our sector, fraught with a legacy of challenges from previous crises. While the Chancellor has listened to our plight, the extended business rates relief is a minor concession amongst the array of tax increases and fiscal shifts, which will take some time to evaluate and consider regarding sector impacts. However, in simple terms, it is still double the contribution of the current business rates.
This relief will be immediately undercut by increased NIC Employer contributions and thresholds with increased individual employer contributions to businesses, net increase in alcohol duty and overarching workforce increases, although rightly intended to support the workforce, will have severe repercussions for already struggling businesses across the sector. This shows an acknowledgement of core businesses within nightlife but lacks consideration for the broader industry outside of bricks and mortar businesses and the vital and diverse role our night-time economy plays within our communities and the UK’s culture and economy.”
The NTIA urges the government to reassess its strategy and provide tangible support before irreparable harm is done to the night-time economy.
