NTIA warns of looming pressure on nightclubs ahead of April tax rises
The Night Time Industries Association (NTIA) has warned of the “concerning” state of the “deeply fragile” UK nightlife industry, ahead of April’s expected tax increases.
New figures from the industry body reveal a loss of 405 nightlife venues since 2020, with the NTIA suggesting that upcoming tax hikes in April – when Autumn Budget policies will be enacted – could result in even more closures.
But positive news came in the shape of a slight bounceback in 2024 for venues in the North East region, and cities including London, Newcastle and Manchester — indicating the potential for recovery.
However, other regions experienced continued declines as businesses continued to battle with higher operational costs, with many businesses still experiencing 30-40% higher operating costs compared with pre-pandemic levels.
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The number of nightclubs in the UK dropped from 1,240 in March 2020 to only 835 in November 2024, as per NTIA; a report published in September by CGA Neilson found that 65 nightclubs in the UK have closed down since the start of 2024.
A number of tax changes that may impact struggling nightclubs were announced within the new Labour government’s Autumn Budget, including plans for National Insurance Contributions (NIC) to increase by 15%, the pay threshold required to pay NIC for employees to be lowered from £9,100 to £5000, and that the national minimum wage will rise from £11.44 an hour to £12.21 an hour.
Meanwhile, alcohol duty is also set to rise in venues by 2.7%, despite a 1.7% reduction in draught-served beverages (i.e. beer and cider).
CEO of the NTIA Michael Kill, said in a statement that though the industry had “seen some recovery”, the sector remains “deeply fragile” with “hundreds of businesses” being lost as a result of “unsustainable cost increases” due to high energy prices, wages increases, the NIC rise and other duties.
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According to Kill, the planned tax increases in April could cause more businesses to close and the resulting uncertainty is “more concerning” than anything that happened “during the pandemic”.
The statement went on to call on Chancellor Rachel Reeves to “step up” and “help businesses and protect jobs”, as the night time landscape continues to be “unsustainable” for many businesses.
The NTIA has urged the government to implement an “immediate tax relief in the Spring Budget,” for nightlife venues. “Without timely action, the night-time economy faces a real risk of further decline, with significant long-term consequences for businesses, employees, and local communities,” warns Kill.
The industry body has previously said that if clubs continue to close at the current rate, December 31, 2029 could be the UK’s “last night out”.
Henrietta Taylor is Mixmag’s Digital Intern, follow her on Twitter
