Home Business News One fifth of night time economy businesses facing collapse in January 2024 without ‘substantial tax reductions’

One fifth of night time economy businesses facing collapse in January 2024 without ‘substantial tax reductions’

by LLB Finance Reporter
20th Nov 23 12:35 pm

The UK Night Time Economy and Creative Industries are on the brink of a catastrophic collapse, with a late start to the festive period, recent performance figures have painted a bleak picture for January 2024.

The absence of government support in the upcoming Autumn budget threatens to plunge the sector into an abyss, with far-reaching consequences for businesses, employees, and the broader economy.

The combination of a challenging economic position, shifts in consumer behaviour and spend and the fallout from industrial action and disputes has left the night time economy and creative industries in an extremely fragile state. Billions have been lost, and the ill-conceived policies and budgetary missteps preceding the current regime have exacerbated an already dire situation.

As businesses grapple with the immediate concern of paying next week’s bills, the limited ability to plan for the future has cast a shadow over the industry. Many are facing a grim reality, unsure of their viability and desperately in need of government intervention to prevent a widespread collapse.

In light of these unprecedented challenges, the Night Time Industries Association urgently calls for comprehensive support measures in the Autumn budget to prevent irreparable damage to the night time economy and creative industries.

Key recommendations include

Extension of Business Rates Relief: Acknowledging the critical need for immediate relief, an extension of business rates relief is imperative to alleviate the financial burden on struggling businesses.

VAT Cut (12.5%) : Given the catastrophic position these industries find themselves in, The Night Time Industries Association advocates for a VAT cut to provide businesses with the financial headroom necessary for survival.

The potential gains far outweigh the losses, as a VAT cut would not only bolster businesses but also instil confidence and stimulate growth.

Michael Kill, CEO of the Night Time Industries Association, emphasized the urgency of these measures, stating, “Without swift and decisive action from the government, we are on the precipice of witnessing the collapse of the night time economy and creative industries.

The extension of business rates relief and a VAT cut are not only necessary for immediate survival but are crucial for the survival of businesses, but also in laying the foundation for future growth and job creation.”

“The Night Time Industries Association remains committed to working collaboratively with the government to develop and implement effective policies that will safeguard the future of these vital industries. The time to act is now, and NTIA urges policymakers to prioritize the hospitality, night time economy and creative industries in the Autumn budget this week.”

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