Night-time sector warns Budget hikes could dim Britain’s nightlife
A flash poll of 345 night-time economy businesses suggests the Chancellor’s latest Budget will impose far steeper rate rises than Treasury estimates. Operators say the Government’s modelling fails to reflect real-world pressures.
Businesses brace for steep rate rises
Signs of strain are growing across the UK’s night-time economy as operators digest the implications of the Chancellor’s Budget. A flash survey of 345 night-time economy businesses shows rate hikes far outpacing Treasury expectations, prompting warnings of closures, job losses and reduced trading hours.
More than half of surveyed businesses expect business rates to jump by over 30%. Almost one in five anticipates rises of between 76% and 100%, while some report increases surpassing 100%. Only 3% predict uplifts of less than 5%.
Nearly half expect rates to climb by 50% or more, with nightclubs among the hardest hit.
Cost pressures mount
The survey shows operators preparing to take defensive measures. Some 87% plan to raise prices, while 75% expect to cut staff hours or reduce workforce numbers. Forty per cent may curtail opening hours or services, and between 10% and 15% could downsize or close premises.
Businesses point to business rate reductions, VAT cuts and NIC relief as essential interventions. Many argue that short-term transition relief will not prevent further damage.
Nightclubs and live music venues remain particularly exposed due to high rateable values and limited targeted support. Uncertainty about long-term annual increases is also restricting operators’ ability to plan.
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Voices from the trade
Operators warn that the numbers translate into real-world consequences: “We’ve spent years building loyal customers. A sudden 70% hike could wipe all that out overnight,” said one nightclub operator.
A café manager facing a 45% rise added: “We’re still paying off post-pandemic debts. How are we supposed to survive this?”
A live music venue operator said: “They call it ‘modest’ in Whitehall. On the ground, it feels like a death sentence. Every extra pound we pay in rates is a pound we can’t spend on staff or artists.”
One bar owner put it plainly: “We’re looking at doubling what we pay. It’s terrifying. The Government doesn’t see what this actually does to a business trying to survive.”
NTIA: Modelling “fundamentally broken”
Michael Kill, CEO of the Night Time Industries Association (NTIA), said: “This data clearly proves the Government’s modelling hasn’t been stress-tested against real business conditions. Our survey shows businesses facing hikes of 30%, 50%, even 100% or more. These are not marginal changes; they are existential threats to businesses that employ thousands, sustain vibrant towns and cities, and drive local economies.”
Industry representatives argue that the Government’s calculations underestimate rental and turnover pressures, fail to account for post-pandemic debts, and overlook cumulative shocks from energy, staffing and inflation.
Call for Government intervention
Kill urged ministers to act: “The Government cannot ignore this. Immediate action is required. Without it, we will see closures, job losses, and the hollowing out of our night-time economy. This is a crisis born of bad modelling, and the consequences are very real.”
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