77% businesses want late night levy axed

This follows the launch of a Home Office consultation into the LNL aimed at upping its use by local authorities.

Many across the sector are seeing this as a ‘stealth tax’ to support local policing and local authority budgets across the UK.

But, with late night venues grappling with inflation, staffing shortages and the energy crisis, the Night Time Industries Association (NTIA) fears this could thwart businesses’ survival.

In a flash poll run by the trade body, 72.2% of 306 with a LNL area felt it did not meet its objective. Some 84.4% of respondents who did not currently pay a LNL felt it would not benefit the area they operated within.

Financial strain

Around four in five (81%) of operators felt the LNL would not be affordable in the current operating climate, with 77% believing it should be abolished.

NTIA chief executive Michael Kill thought it was “absurd” the Government was considering consulting on the expansion of the current late night levy scheme.

He said: “It's atrociously timed, in the middle of a cost inflation crisis, where the sector is perilously being pushed closer and closer to the edge."

No benefit

Only nine local authorities, including Newcastle, Southampton and London boroughs Camden and Tower Hamlets, charged a late-night levy in 2022. Several councils, including Nottingham and Cheltenham, have scrapped the tax in support of the night time economy.

“The House of Lords review on licensing last year was very clear that the late night levy had not met its objectives, wholeheartedly backed by the industry, suggesting that it is unaffordable and represents no benefit to businesses on the ground," added Kill.

Some 45.9% of respondents to the NTIA survey operated a nightclub, venue or event space. 36.1% ran pubs, bars and restaurants. The rest of the respondents operated hybrid spaces, or were promoters, events organisers, supply chains or other businesses.