Nightclubs ‘left behind’ on business rates

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Left behind: NTIA warns nightclubs must be included in targeted business rates relief

Nightclubs must be included in targeted business rates relief, the Night Time Industries Association (NTIA) has warned, with more than a third lost since the pandemic.

The latest NTIA and NielsenIQ, powered by CGA, Night Time Economy Market Monitor revealed 455 nightclubs have been lost since March 2020, representing a 36.5% contraction.

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In total, the number of late-night venues, including nightclubs, late-night bars and casinos, declined by 28.7% between March 2020 and June 2026, compared with a 14.4% reduction across the total market.

This equates to 867 fewer late-night venues, with the sector contracting at almost twice the rate of the wider hospitality market.

Meanwhile, the wider night-time economy, which also includes pubs, restaurants, theatres and cinemas, has recorded a net reduction of 14,332 outlets since March 2020.

Of those, 374 were lost during the first six months of 2026, equivalent to more than 14 outlets per week.

However, just 13 of those losses were within the late-night venue category. The figures represent net reductions in operating venues, accounting for permanent closures and new openings.

Business rates support

The warning comes ahead of Chancellor John Healey’s autumn Budget, set to take place on 28 October.

Earlier this year, the Government announced a 20% business rates relief scheme for hospitality, due to take effect from 1 April 2027.

While the initiative will apply to eligible pubs, social clubs and live music venues, dedicated nightclubs were excluded from the plans.

The NTIA has called for the targeted support to be extended to nightclubs, arguing businesses that have experienced some of the steepest declines in the hospitality sector should not be overlooked.

NTIA chief executive Michael Kill said: “Britain’s late-night venues are disappearing at almost twice the rate of the wider market. That should be an enormous wake-up call for the Government.

“This is not a projection or a hypothetical warning about what might happen in the future. These are businesses and cultural spaces we have already lost.

“More than one in four late-night venues has disappeared from the operating stock since 2020, and more than a third of our nightclubs are gone.”

Call for action

The association also called for a review of employment costs, including employer National Insurance contributions, additional support for independent operators and greater recognition of electronic music and nightclub culture.

Kill added: “You cannot claim to protect Britain’s music economy while leaving behind the businesses that sustain its late-night culture.”

He further urged ministers to recognise the sector’s contribution to employment, tourism and town-centre economies: “Our message is simple: stop leaving nightclubs behind.

“If the Government is serious about supporting business, culture and our high streets, it must recognise the late-night economy as part of the solution.”