The UK’s 0.3% GDP growth in Q2 2025 is better than expected, but marks a slowdown from the 0.7% recorded in Q1.
While services and construction delivered gains, the production sector contracted and business investment fell sharply – signs of underlying fragility.
For the night-time economy, which contributes over £153.9 billion annually, these figures are a reminder that headline growth masks the pressures many businesses face.
Rising energy, labour, and supply costs, coupled with higher taxation, continue to erode margins. Consumer spending remains volatile, and many venues are operating week-to-week.
Our latest data shows slowing growth – just 2.5% last year – and declining employment across pubs, clubs, and cultural spaces. Without intervention, this slowdown risks deepening, putting local economies and community life under strain.
We need targeted government support: business rates reform, VAT alignment for hospitality, and sustained engagement with our sector to drive recovery and growth. The night-time economy is a vital economic and cultural engine, creating jobs, driving tourism, and fostering social cohesion.
As the wider economy navigates uncertainty, we must ensure the businesses that power our evenings and nightlife are not left behind.
