Late-night venues consider job cuts as business rates rise
Nearly half of UK late-night venues expect business rates to soar by 50% or more, while three-quarters of operators are anticipating job cuts.
In last month’s autumn Budget, chancellor Rachel Reeves claimed she was introducing a permanently lower tax rate for more than 750,000 retail, hospitality and leisure properties.
However, it was recently revealed that the business rates relief for hospitality, leisure and night-time venues, which was introduced during the pandemic, will be abolished from April 2026.
Currently, night-time venues enjoy 40% business rates relief, but this will end in 2026.
The Night Time Industries Association (NTIA) said businesses, such as city-based nightclubs, now face a “perfect storm” of unsustainable operating costs.
A flash poll by the NTIA revealed that nearly half of the operators it surveyed expect business rates to increase by at least 50%.
Of the 345 operators, almost 20% said they expect to face business rates hikes of between 76% and 100%.
Meanwhile, 87% of businesses plan to raise prices for consumers, and 75% are considering cutting their workforce or staff hours.
In addition, up to 15% of respondents could see their long-term viability challenged without support.
“We’re not talking about growth, we’re talking about survival,” one unnamed nightclub operator said. “Staff livelihoods, community spaces, and nights out are all at stake if costs keep rising like this.”
The NTIA warned that rising rates are in addition to elevated costs, such as wage increases, National Insurance contribution (NICs) hikes, alcohol duty, and other tax pressures.
Operators report that running costs are 30–40% higher than in 2020 due to these factors.
Michael Kill, CEO of NTIA, said: “The night-time economy is managing significant cost pressures. Transitional relief will help, but it is temporary. The recent revaluation has pushed many city nightclubs into higher multipliers, even as wage, national insurance, alcohol duty, and other tax costs have risen.
“Without targeted support, venues will face difficult decisions around staffing, pricing, and opening hours.”
The NTIA is calling on the UK government to introduce targeted business rates relief for night-time economy venues, conduct revaluation reviews of the late-night industry, cut VAT and reverse NIC contribution thresholds for employers.
“The night-time economy supports jobs, tourism, and local vibrancy,” Kill added. “With proportionate policy measures, these venues can remain sustainable and continue to enrich communities and city life.”
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