Michael Kill, CEO of the Night Time Industries Association (NTIA), said:
“We were never under any illusion that this Budget would resolve the deep-rooted challenges facing the night-time economy. The damage accumulated over many years cannot be reversed through a single fiscal statement, and we recognise the difficult economic circumstances in which the Chancellor is operating.
“There is a clear attempt to balance immediate pressures with a longer-term strategy for growth, investment and structural reform, which we recognise. Importantly, the Government has listened to industry concerns around gambling taxation and support for small and medium-sized businesses, recognising the importance of protecting our high streets and limiting further financial harm.
“The measures around business rates relief for pubs, clubs and music venues, increased Small Business Rate Relief thresholds, energy costs, youth employment, apprenticeships and access to finance demonstrate some recognition of the pressures facing businesses. However, their impact across the wider night-time economy is likely to be limited. With around 70% of our sector made up of SMEs, the detail underpinning these announcements will be critical in determining who benefits, the scale of financial relief and whether these measures meaningfully address the pressures operators face.
“More importantly, the Chancellor has not gone far enough on the bigger opportunities to alleviate the tax burden across the broader nightlife and hospitality sector. Meaningful reductions in VAT and employer National Insurance contributions could have provided immediate relief, supported employment, stimulated demand and created the financial headroom businesses desperately need to invest and grow.
“Years of rising costs, depleted reserves, increasing employment liabilities and reduced consumer spending have fundamentally changed the financial operating model of businesses across our sector. For many, the priority is no longer growth, but survival. Whether the measures announced today are sufficient to prevent further harm will ultimately depend on the detail and their tangible impact on operating costs.
“While the Government’s longer-term ambitions are encouraging, they must be matched by a jointly developed short-term strategy to address the immediate challenges facing operators. Our sector needs stability, the right financial conditions and a genuine opportunity to recover, ensuring viable businesses are not lost while longer-term reforms take effect.
“We must recognise progress where it has been made, but we cannot confuse limiting further damage with repairing the damage already done.
“This Budget may provide some breathing space, but the real test will be whether it prevents further business losses and creates the conditions for recovery. One Budget cannot undo years of damage. What we need now is immediate action alongside long-term reform, giving businesses the confidence and financial capacity to survive, invest and grow again.”
