Under the proposals, revealed by the Government this week, mayors would be granted a share of the income tax and business rates raised in their areas, giving them more control over how money is spent locally.
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It forms part of Prime Minister Andy Burnham’s wider plan to transfer power away from Westminster and give more decision-making powers to mayors.
The Night Time Industries Association (NTIA) welcomed the proposal, but stressed the night-time economy must be central to local growth plans.
Significant transfer
NTIA chief executive Michael Kill said: “This significant transfer of power and funding presents mayors across the country with a major opportunity to reshape their local economies.
“The night-time economy, alongside our wider social and cultural economy, must have a meaningful place at the table as these new powers are implemented.
“These industries are central to local growth, employment, tourism, regeneration and community identity.
“Mayors must work directly with the businesses and organisations operating within them to ensure this opportunity delivers lasting and inclusive growth.”
This comes after the Government last week announced business rates bills for pubs, clubs and live music venues would be reduced from April next year.
The move was broadly welcomed by the sector, although hospitality businesses continue to call for further support, including a reduction in VAT.
Stronger support
Against that backdrop, Kill cautioned the devolution plans must be backed by stronger and clearer support from central Government.
The warning comes after research from NIQ and the NTIA earlier this year found the UK’s night-time economy had contracted by 5.1% over the previous 12 months, with bars and clubs continuing to close amid rising costs and weakening demand
“Without coordination, we risk replacing fragmented Whitehall decision-making with fragmented approaches across regions,” he continued.
“Now is the time for the Government to establish a dedicated Night-Time Economy ministerial portfolio, providing the leadership and accountability needed to connect national policy with local delivery.
“This would ensure the Government’s growth agenda fairly recognises and supports the night-time, social and cultural economies in every part of the country.”
