Britain’s late-night economy is at risk of losing up to 10,000 more venues and 150,000 jobs by 2028 unless the Chancellor delivers urgent support in the Autumn Budget, industry leaders have warned.
The Night Time Industries Association (NTIA) said rising costs, fragile consumer confidence and the threat of further tax increases have pushed the sector to the brink, with many operators poised to close in the New Year if measures go against them.
The crisis is most acute among grassroots and independent venues — the clubs, bars, festivals and cultural spaces that underpin the UK’s nightlife and creative industries. These sites, the NTIA said, are part of the “cultural and social fabric” of towns and cities, providing essential platforms for electronic music, counterculture businesses and emerging creative talent.
The latest Night Time Economy Market Monitor, produced by CGA by NIQ and the NTIA, shows the scale of the problem. Late-night venues have fallen 28% since March 2020, with nearly 5% of that decline occurring in the past 12 months alone. Independent operators have been hit hardest, down more than 30%, double the rate of larger chains.
Industry leaders say soaring operating costs — from energy and supply chains to staffing and National Insurance increases — are eroding margins, while potential increases in alcohol duty, fuel costs, taxi fares and gambling levies could further squeeze both operators and consumers. Many venues warn they may “hand back keys” shortly after the Budget if conditions worsen.
If no intervention comes on 26 November, the NTIA estimates the UK could lose up to 20% more late-night venues on top of those already shuttered since the pandemic. The consequences would ripple across hospitality, events, security, live music, supply chains and local economies.
Michael Kill, CEO of the NTIA and Vice President of the International Nightlife Association, said the sector has been “suppressed for too long” by rising costs and inconsistent government policy.
“The late-night economy is an engine for jobs, tourism and community vibrancy,” he said. “Grassroots venues sit at the very heart of this ecosystem. These pressures are punishing young people, limiting job opportunities, damaging independent businesses and eroding the UK’s cultural identity. The Chancellor must act before it is too late.”
NTIA Chair Sacha Lord warned that the sector has reached a “tipping point”, with National Insurance hikes, inflation and tax uncertainty pushing operators and consumers to breaking point. He said many venues have contingency plans to shut immediately after the Budget if support is not forthcoming.
Despite the pressures on nightclubs and late-night hospitality, the evening economy — covering earlier-operating licensed premises — is performing more robustly, growing 0.9% year-on-year and now only 7.4% below pre-pandemic levels. The NTIA argues this shows demand for hospitality remains strong, but that late-night venues face structural challenges beyond consumer behaviour.
The association is calling on the Chancellor to rule out new taxes that impact the sector, introduce targeted relief for grassroots operators, invest in safe late-night transport and recognise nightlife as critical national infrastructure.
With the Budget days away, industry leaders say the decisions made on 26 November will be decisive. Without intervention, they warn, the UK could face shuttered venues, quieter streets and long-lasting damage to its cultural and creative economy.
