NTIA calls for Gov to slash VAT
It said this would be the most effective tax reduction measure to provide relief and support to businesses across the night time economy and hospitality sectors.
The trade body urged the Government to deliver a cut that would include admission tickets, food, soft drinks and alcohol.
NTIA chief executive Michael Kill said: “A comprehensive and inclusive VAT cut is absolutely essential to prevent the collapse of our industry.
“As the CEO of NTIA, I have dedicated the past two weeks to engaging with businesses on a daily basis, actively listening to their challenges and concerns.
“It deeply saddens me to witness the devastating impact this crisis has had, with businesses closing down, individuals losing their life savings and stability, families enduring financial struggles, and many people experiencing mental health issues.”
Sector in crisis
Kill continued: “It is important to underscore that our industry is not flourishing as some may suggest. Rather, it is predominantly in crisis, with the majority of businesses barely able to survive.
“What is even more disheartening is that once again, the industry hangs on every word from the Government, leading up to the budget on the 6 March, as it may significantly impact thousands of people’s lives and financial stability.”
He said Government needed to clearly communicate its intentions and show some level of consideration for all business owners and employees who may face further challenges in the year ahead.
Industry lifeline
He added: "The Night Time Economy is a significant contributor to the UK economy, offering employment opportunities, fostering creativity, and enriching our cultural landscape.
“Without immediate government intervention, we risk losing countless businesses, jobs, and the vibrancy that this sector brings.
“We implore the government to act swiftly and acknowledge the critical situation faced by the night time economy."
By implementing an all-encompassing VAT cut while maintaining responsible regulation, the Government could provide a “lifeline” to businesses and safeguard the future of this vital sector, he said.
