Industry leaders warned that the UK’s night-time economy risks losing up to 10,000 more venues and 150,000 jobs by 2028 if the Chancellor does not provide urgent support in the autumn Budget.
The Night Time Industries Association (NTIA) said rising costs, weak consumer confidence and the threat of further tax rises had pushed the sector to the brink, with many operators forced to close in the new year if the measures against them failed.
The crisis is worst in grassroots and independent venues – the clubs, bars, festivals and cultural spaces that shape the UK’s nightlife and creative industries. According to the NTIA, these sites are part of the “cultural and social fabric” of cities and towns and provide important platforms for electronic music, counterculture companies and emerging creative talent.
The latest Night Time Economy Market Monitor, produced by CGA, NIQ and NTIA, shows the scale of the problem. The number of late-night venues has declined 28% since March 2020, with nearly 5% of that decline occurring in the last 12 months alone. Independent operators were hit hardest, with a decline of more than 30%, twice as large as larger chains.
Industry leaders say rising operating costs – from energy and supply chains to staff and social security increases – are cutting into margins, while possible increases in alcohol tax, fuel costs, taxi fares and gambling levies could further strain both operators and consumers. Many venues are warning they could be “handed back the keys” shortly after the budget if conditions worsen.
If there is no intervention on November 26, the NTIA estimates the UK could lose up to 20% more nightspots, on top of those already closed since the pandemic. The consequences would impact hospitality, events, security, live music, supply chains and the local economy.
Michael Kill, CEO of the NTIA and vice-president of the International Nightlife Association, said the sector had been “suppressed for too long” by rising costs and inconsistent government policies.
“The night-time economy is a driver of jobs, tourism and community vibrancy,” he said. “Grassroots venues are at the heart of this ecosystem. These pressures punish young people, limit employment opportunities, harm independent businesses and undermine the UK’s cultural identity. The Chancellor must act before it is too late.”
NTIA chairman Sacha Lord warned that the sector had reached a “tipping point” as rising social insurance, inflation and tax uncertainty pushed operators and consumers to the breaking point. He said many venues had contingency plans to close immediately after the budget was released if support was not forthcoming.
Despite pressure on nightclubs and late-night hospitality, the evening economy – which includes previously operating licensed premises – is performing more robustly, growing by 0.9% year-on-year and now just 7.4% below pre-pandemic levels. The NTIA argues this shows that demand for hospitality remains strong, but nightspots face structural challenges that go beyond consumer behavior.
The association is calling on the Chancellor to rule out new taxes impacting the industry, introduce targeted relief for grassroots operators, invest in safe night-time transport and recognize nightlife as critical national infrastructure.
With the budget just days away, industry leaders say decisions made on November 26 will be crucial. Without intervention, they warn, the UK faces closed venues, quieter streets and lasting damage to its cultural and creative industries.
