‘A policy failure’: UK nightlife shrunk 4.1% in 2025
2025 marked a critical point for the UK night time economy, with the number of late-night venues falling by 4.1%, new research has revealed. Night Time Industries Association CEO Michel Kill is clear that the loss of venues isn’t a “market evolution” but a “policy failure”.
The recent Night Time Economy Market Monitor, produced by the Night Time Industries Association and NIQ, reveals that Britain’s £160bn late-night economy has shrunk by 28.2% since March 2020’s initial Covid lockdowns.
The number of nightclubs has plummeted by more than 35% since 2020, with late-night bars falling by 4.9% last year, the snapshot revealed.
The late-night economy battled a slew of obstacles in 2025, including poor public transport infrastructure and after-dark safety concerns. Rising costs, falling footfall and tax burdens also added to the perfect storm.
Government ‘must act now’
Michael Kill, NTIA CEO, said that losing 28% of venues isn’t a “market evolution”, but a “policy failure”.
He said: “This is what happens when a £160bn sector is loaded with rising costs and then left to absorb shock after shock without support.
“If the government wants growth, jobs and a competitive visitor economy, it must act now.” But how likely is this? Last year, Kill told the drinks business of “growing anger” among operators who felt “systematically squeezed”, admitting, “I can only see it getting worse before it gets better”.
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Still, he’s crystal clear in the actions Government must take to come to the sector’s rescue. He lists them: “An urgent economic support package, including a VAT reduction for hospitality and night-time businesses, before more venues and livelihoods are lost.”
A silver lining?
Additionally, more than 75,000 jobs were lost across the sector in 2024 to 2025, with real-terms night time spending still 10% below 2019, with productivity growth stalled at just 1.5%.
On the other hand, cocktail, craft and themed bars actually grew by 0.9% over the 12 months, showing pockets of resilience in the sector. This points to a trend for earlier visits, with three in ten consumers saying they prefer going out earlier than they used to, according to NIQ.
NTIA said this indicates the disproportionate difficulties that late-night venues must contend with, including safety and transport concerns. This was highlighted by NIQ’s High Tempo Report which revealed that more than a quarter (27%) of consumers now consider safety and security when choosing a high-tempo venue, with 30% also considering the ease of travel.
What can be done to help?
Sacha Lord, NTIA chair, said: “Nightlife is economic infrastructure, cultural capital and a global calling card for the UK. Other countries understand this and invest accordingly.”
The former night-time economy adviser for Greater Manchester added: “We are allowing Britain’s night-time identity to erode through inaction.”
He echoed broader industry calls in urging for a targeted VAT cut, alongside transport and safety investment. “The cost of doing nothing will be far higher,” he added.
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