More than a fifth of night-time economy firms face collapsing in January 2024 without “substantial tax reductions”, the Night-Time Industries Association (NTIA) has warned.
According to a flash poll of NTIA members, of the 373 respondents 20% said their business faced potential closure in January without Government support in tomorrow’s Autumn Budget.
Moreover, 72% of those surveyed were barely breaking even or losing money, 55% of which were independent operators.
Almost all (95%) of participants urged Chancellor Jeremy Hunt to cut VAT to 12.5% for the hospitality sector while 78% called for an extension of business rates relief to safeguard venues.
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 and crucial for immediate survival of businesses, but also in laying the foundation for future growth and job creation.
“We remain committed to working collaboratively with the Government to develop and implement effective policies that will safeguard the future of these vital industries.”
The NTIA warned without support to “alleviate financial burdens on struggling businesses”, the nation’s night-time and creative economies were “on the brink of catastrophic collapse”.
It added a challenging economic position, shift in consumer behaviour and spend alongside the “fallout” from industrial action in other sectors had left hospitality firms in an “extremely fragile” state.
Across the sector, industry leaders have repeatedly called for support in the run up to the statement, with a duty freeze and further energy support also suggested in addition to a VAT reduction and business rates relief extension.
Kill added: “The time to act is now, and we urge policymakers to prioritize the hospitality, night-time economy and creative industries in the Autumn budget this week".