Labour’s Budget leaves 90% of venues struggling with unmangeable costs and many will go bust

The UK’s nightlife sector, a vital engine of the national economy, is now in severe jeopardy following the government’s Autumn Budget.

Already battered by relentless cost increases, pubs, bars, nightclubs, and other night-time venues are facing an unprecedented crisis that could spell widespread closures and job losses.

A new survey of over 500 members from the Night Time Industries Association (NTIA) reveals that 90% of businesses in the sector are experiencing devastating financial impacts, with 40% warning they could be forced to close within the next six months unless urgent support is provided.

The stakes are enormous. The night-time economy is a £136 billion industry, supporting over 2 million jobs and serving as one of the biggest employers of under-30s in the UK. However, with escalating costs and shrinking consumer spending, this once-thriving sector is now fighting for survival.

A perfect storm of rising costs and decreasing revenues

Prior to the Autumn Budget, night-time economy businesses were already grappling with a 30-40% increase in operating costs due to the ongoing cost-of-operating crisis. Consumer spending has fallen as disposable income decreases, resulting in reduced visit frequency, shorter dwell times, and lower spending per visit. With mounting costs and shrinking revenue, businesses are now struggling to sustain an environment that is increasingly unsustainable.

The NTIA’s latest survey paints a stark picture of the crisis facing the industry, 523 members took the survey, they founf that skyrocketing operating costs and over 75% of venues expect additional annual costs exceeding £30,000 due to increases in energy prices, National Insurance contributions, alcohol duties, and the minimum wage. Some businesses face annual hikes surpassing £80,000.

There is severe profitability and viability concerns with 88% of respondents report that the Autumn Budget will significantly harm their profitability, with many fearing imminent closure.

Forced price increases and service reductions will affect more than 90% of businesses who are resorting to measures such as raising prices, cutting staff hours, reducing operational hours, and delaying essential investments.

This crisis also has a human cost as the NTIA survey indicates that 92% of businesses are now forced to cut jobs, leaving thousands of workers—many of them young people—without income and communities without the social and economic benefits these venues provide.

Unsustainable workforce costs associated with maintaining a workforce surging, businesses are struggling to provide quality service and safety. The weight of these increased workforce costs has created an unviable trading environment for many operators.

Michael Kill, CEO of the NTIA, said, “The Autumn Budget has effectively signed a death sentence for many night-time economy businesses across the UK. This sector, which contributes over £136 billion to the economy and employs over 2 million people—especially young people under 30—is being pushed to the brink.

“The government’s ‘pro-growth’ claims ring hollow in the face of policies that are, in reality, crippling the very industries that drive economic vitality, social cohesion, and cultural richness.”

NTIA’s call for immediate government intervention

The NTIA is urgently calling on the government to take immediate action on three critical areas to prevent the collapse of this vital sector:

1. Expanded Business Rate Relief: Current relief measures are insufficient for an industry facing unprecedented challenges. Targeted rate relief could provide a critical lifeline for small and medium-sized venues that lack the financial reserves of larger corporations.
2. Energy Subsidies for Nightlife Venues: With energy prices at all-time highs, the government must implement direct subsidies for night-time economy venues, or risk the collapse of a sector that provides millions of jobs.
3. Reconsideration of Alcohol Duty and Employer National Insurance Contributions: Increases in alcohol duties and employer National Insurance contributions are exacerbating an already unsustainable financial burden for night-time economy businesses. These added costs force operators to raise prices for consumers, which leads to reduced consumer spending and footfall—undermining the viability of an industry that thrives on accessibility and affordability.

The reality: This Budget is ont pro-growth

The NTIA survey is a clear contradiction of the government’s claims that the Autumn Budget is “pro-growth.” In reality, it has created a hostile environment for one of the UK’s most dynamic sectors, threatening to dismantle an industry that is crucial to the country’s economy and cultural fabric.

The night-time economy not only contributes £100 billion annually but also provides millions of jobs and is one of the largest employers of young people in the country—a demographic hit hardest by recent economic pressures.