Joe GallopThe Night Time Industries Association (NTIA) has warned that one fifth of night time economy businesses face collapse in January 2024 without “substantial” tax reductions in the upcoming Autumn Budget.
The association has run a flash poll which received 373 member resonses among venues such as bars, pubs, nightclubs and live music venues.
It found that 20% of businesses polled are facing potential closure in January without government support; 72% of businesses are either barely breaking even or losing money; 95% of businesses polled requested government cut on VAT for the sector; and 78% of businesses polled requested extension of business rates relief.
The NTIA has called for an extension of business rates relief and a VAT cut of 12.5%. It recently partnered with Save Our Scene UK (SOS) to launch the ‘Culture Calling’ campaign which saw a demonstration take place in London on 18 November.
NTIA CEO Michael Kill said, “Without swift and decisive action from the government, we are on the precipice of witnessing the collapse of the night time economy and creative industries. The extension of business rates relief and a VAT cut are not only necessary for immediate survival but are crucial for the survival of businesses, but also in laying the foundation for future growth and job creation.
“The NTIA remains committed to working collaboratively with the government to develop and implement effective policies that will safeguard the future of these vital industries. The time to act is now, and NTIA urges policymakers to prioritize the hospitality, night time economy and creative industries in the Autumn budget this week.”