December 2nd, 2024
The Night Time Industries Association (NTIA) Scotland is issuing a stark warning:
Without urgent action in this week’s budget, many of our most cherished venues and cultural businesses could be lost forever.
Scotland’s night-time economy is in freefall. Business failures across the country have been non-stop this year as spiralling costs, record-high taxation, and shrinking disposable incomes push businesses past breaking point.
A Systemic Decline
The once-thriving night-time economy is now in danger of collapsing. Nightclubs, bars, music venues, and cultural spaces—essential to Scotland’s identity—are shutting down at an alarming rate. The combination of crippling operating costs, the highest tax policies of any UK Nation, and reduced consumer spending has created an unsustainable environment. Every week brings new closures, with cherished venues going dark and falling silent.
Recent figures from the British Institute of Innkeeping (BII) reveal:
- 25% of venues are already operating at a loss.
- 80% are generating no profit at all.
- For some, rising costs from the latest UK budget will amount to a devastating 10%+ of turnover.
Disproportionate lack of Support Is Killing Scottish Businesses
In England, and in recognition both of the unsustainable increases in costs and the importance of the sector to employment and economic growth, businesses have been shielded by a 75% business rates discount.
In Scotland, our SMEs have been denied equivalent support, leaving them exposed to mounting financial pressure. The result? A disproportionately higher rate of business failures and job losses north of the border as confirmed by recent figures from the SBPA demonstrating that sectoral failures in Scotland are running at a rate 100% higher than in England.
Budget Action Is Now Urgent
The NTIA is calling on the Scottish Government to act decisively in the budget by implementing:
- Minimum of 40% business rates relief for 2024/25 mirroring the support provided in England. Scottish companies have missed out on the 75% relief which has proved vital to English businesses over the previous 3 years so are now in greater financial distress.
- An extension of the 100% Islands rates relief to 200 of Scotland’s most vulnerable cultural venues. These venues are not just businesses—they are the heart of our town and city centres, driving footfall, culture and community spirit. They were the worst affected by the pandemic, employ the largest numbers of staff, musicians and artists, and have the highest costs
A Workforce on the Brink
The human cost of inaction is equally severe. With 90% of venues employing between 10 and 50 people, but the vast majority of these being too large for the small business bonus scheme reliefs, thousands of jobs are on the line.
The sector’s decline also limits opportunities for Scotland’s musicians, artists, and performers, whose stages are disappearing. The creative lifeblood of our communities is being drained away.
The Harsh Reality
This isn’t just about businesses—it’s about people’s lives and Scotland’s cultural identity. If support isn’t delivered now, the cost will be irreversible:
- More closures: Once-cherished venues will be gone for good.
- Lost jobs: Thousands more people will be pushed into unemployment.
- Cultural erosion: Scotland’s reputation as a vibrant hub for nightlife and culture will wither.
The Clock Is Ticking
The Scottish Government has the power to prevent this disaster. The Barnett Consequentials have provided an additional £1.4 billion in 2024/25, and £3.4 billion in 2025/26. The future of Scotland’s night-time economy, and the high streets it anchors, depends on bold, targeted intervention now.
Michael Kill Dr.(h.c) FRSA
Scotland: 1007 Business Lost in the NTE since March 2020 – Sept 2024 (144 in the first 9 months)
Edinburgh: 99 Business Lost between March 2020 – September 2024 (31 in the last 9 months)
Glasgow: 149 Businesses Lost between March 2020 – September 2024 (45 in the last 9 months)
