Nightclubs across the UK face “severe jeopardy” as a result of tax hikes announced in last month’s Autumn Budget, the Night Time Industries Association (NTIA) has warned.
Some 40% have warned of closure within the next six months, while 90% were found to be faced with “devastating financial impacts,” a survey by the trade body found.
“The Autumn Budget has effectively signed a death sentence for many night-time economy businesses across the UK,” NTIA head Michael Kill commented.
Chancellor Rachel Reeves in the Budget unveiled plans to lift the rate of employer national insurance contributions from 13.8% to 15% and cut the threshold at which this is paid from £9,100 to £5,000.
NTIA said the hike would contribute, alongside the likes of higher minimum wage payments, to a £30,000 increase in annual costs for 75% of the UK’s nightclubs.
Some were facing an £80,000 uptick in costs, it added, with 88% of survey respondents flagging concerns over significant harm to profitability.
“This sector, which contributes over £136 billion to the economy and employs over 2 million people [...] is being pushed to the brink,” Kill said.
“The government’s ‘pro-growth’ claims ring hollow in the face of policies that are, in reality, crippling the very industries that drive economic vitality, social cohesion, and cultural richness.”
The industry body's findings follow warnings from the likes of hospitality firms over closures and by supermarkets of price hikes in response to the Budget.