Seven in 10 late-night firms facing closure
A flash poll, conducted by the association, has unveiled the “stark reality” of rising costs and “insufficient support” for the sector, with 70% of the 500 respondents either barely breaking even or operating at a loss.
Following the results, the NTIA warned without “urgent action” in the form of an extension to business rates relief in the upcoming budget on Wednesday 30 October, the future of the night-time economy was “increasingly perilous”.
It comes as bosses of the country’s biggest pub groups backed calls for business rates support in Budget, with CEOs from firms including Greene King and Stonegate having signed a letter to the Chancellor urging the Government for a lower level of business rates for the sector.
Last week trade body UKHospitality (UKH) predicted September’s headline inflation rate of 1.7% would mean a £48bn uptick in business rates across the hospitality sector next year.
Breaking point
In addition, Prime Minister Keir Starmer recently refused to rule out an increase to National Insurance employer contributions in the Budget when questioned by the BBC.
Meanwhile, earlier this month, the British Beer & Pub Association (BBPA) warned “pubs will close and it will be the end of the affordable pint” without targeted support in the Budget to tackle to duty costs.
The NTIA added a culmination of these additional financial “burdens” could trigger a “seismic collapse” for firms as early as Q1 2025.
NTIA CEO Michael Kill said: "The night-time economy is at a breaking point. Our latest poll clearly shows without the extension of business rates relief, seven out of 10 businesses will face closure within months.
“The rising costs across the board, including fears of increases to National Insurance, fuel, and alcohol duties, have left the sector struggling to survive. Without urgent intervention, we risk losing a vital part of the UK's cultural and economic landscape.”
Critical support
Night-Time Economy advisor for Greater Manchester and NTIA chair Sacha Lord also recently urged the Treasury to “carefully consider” the needs of all sectors ahead of the fiscal address, stating “one-size-fits-all decisions” could harm economic growth.
Moreover, the latest figures from accountancy firm Price Bailey showed of the 37,961 pubs and bars in the UK 7,445 (20%) pubs were technically insolvent and 11% (4,310) were found to be at imminent risk of closure.
Kill added: “We implore the Government to recognise the severity of the situation and extend critical support to ensure the survival of the night-time industry.
“The time to act is now—before we witness widespread closures and job losses that will devastate communities across the country.”
