NTIA: budget to ‘define survival of thousands of businesses’
The Night Time Industries Association (NTIA) has urged the UK government to “act before it is too late” and implement three measures to protect the hospitality sector, ahead of the November budget.
In response to the news that the autumn budget will be held on 26 November, the NTIA has outlined three changes that the UK government must make to give the hospitality industry ‘the breathing space it needs’.
The three measures include permanently reducing VAT for hospitality and the night-time economy, reinstating National Insurance thresholds for employers, and delivering reform of business rates, or the lowering of the business multiplier and reform business rates.
NTIA CEO Michael Kill said: “As the chancellor delivers the budget on 26 November, the eyes of the country, and our industry, will be firmly fixed on the government’s response to one of the most critical economic moments in recent memory.
“This budget is not only a test of fiscal credibility, it is a defining moment for the future of this government and its ability to protect jobs, businesses, and communities across the UK. The night-time economy, which contributes over 153 billion to the UK economy and supports over two million jobs, continues to face unprecedented challenges.
“Without urgent intervention, we risk the irreversible decline of a sector that is central to the nation’s cultural identity, economic growth, and social fabric.
“This budget cannot be business as usual. The decisions taken on 26 November will define the survival of thousands of businesses and the futures of the people they employ. The government must listen, and act, before it is too late.”
In the last budget, in spring, chancellor Rachel Reeves was accused of “ignoring” the hospitality and spirits sectors.
An increase in costs of National Insurance contributions (NIC) and minimum wage, which came into effect in April, have been calculated to cost UK hospitality businesses an extra annual cost of £3.4 billion (US$4.4bn).
Since 2020, one in four late-night venues in the UK have closed – an all-time high.
UK distillers and the Scotch Whisky Association have also rallied for much needed support from the government this week, in the form of a duty freeze on spirits, ahead of the next budget.
The UK hospitality sector has lost 84,000 jobs since the October 2024 budget, data from the Office for National Statistics (ONS) has shown.
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