The late-night economy faces a loss of 10,000 businesses and 150,000 jobs by 2028 without budget intervention, industry warns
Britain’s economy is at risk of losing up to 10,000 more jobs and 150,000 jobs by 2028 unless the Chancellor delivers emergency support in the autumn budget, industry leaders have warned.
The Night Time Industries Association (NTIA) said rising costs, weak consumer confidence and the threat of tax hikes have dampened the sector, with many operators poised to close in the new year if the odds are against them.
The problem is particularly important between grassroots and private spaces – the clubs, bars, festivals and cultural spaces that make up the UK’s nightlife and creative industries. These sites, says Ntia, are part of the “cultural and social” fabric of towns and cities, providing important platforms for electronic music, emerging businesses and creative talent.
The latest overnight economic market data, produced by the CGA by NIQ and NTIA, shows the extent of the problem. Late-night pitches have fallen 28% since March 2020, about 5% of that decline in the past 12 months alone. Independent operators have been hit hard, down more than 30%, double the average of the big chains.
Industry leaders say that the increase in operating costs – from the chains and the supply of chains to the increase in national insurance – while increasing the margins, it costs money to flow, taxi money and gambling fees can go further for both operators and consumers. Many places warn that they “may hand over the back keys” shortly after the budget if conditions worsen.
If there is no intervention by 26 November, the NTIA estimates the UK could lose 20% more places overnight than those closed since the pandemic. The results would continue to include hospitality, events, security, live music, offering local chains and fingers.
Michael Bull, Chief Executive of Ntia and Speaker of the Ntia Nightlife Association, said the sector has been “stressed for too long” by rising costs and inconsistent government policy.
“The late-night economy is an engine for jobs, tourism and vibrancy,” he said. “Grasslands sit at the heart of this ecosystem. These pressures penalize young people, reduce employment opportunities, harm private businesses and damage the UK’s cultural identity.”
The chairman of Ntia Lord warned that the sector has reached a “tipping point”, with mountains of national insurance, inflation and tax uncertainty to pressure operators and consumers to pressure operators and consumers to pressure. He said many places have emergency plans to close immediately after the budget if support does not materialize.
Despite the pressures on nightclubs and hospitality at night, the evening economy – covering previously licensed premises – is doing very well, growing annually by only 0.9% below the epidemic levels. The NTIA points out that this shows demand for hospitality remains strong, but those late-night spots are facing non-consumer challenges.
The association is calling on the Chancellor to rule out new taxes that impact the sector, introduce targeted relief for grassroots operators, invest in safe late-night transport and recognize nightlife as critical national infrastructure.
With budget days far away, industry leaders say the decisions made on November 26 will be decisive. Without intervention, they warn, the UK could face closed areas, quiet streets and long-term damage to its cultural and creative economy.
