Businesses across the country are bracing for a financial blow as the Government moves ahead with tax hikes – despite repeated warnings of their devastating impact.
With an increase in Employer National Insurance Contributions (NIC) and a sharp reduction in Business Rates relief, many struggling businesses face an existential threat.
Industry leaders report that operating costs have already surged by an unsustainable 30-40% in recent years.
The latest tax increases will pile on an additional burden of between £30,000 and £80,000 per business, pushing many to the brink. The consequences will be dire: closures, job losses, and long-term damage to the economy.
To survive, businesses have already made drastic cuts – reducing staff, limiting hours, and scaling back services.
This latest financial hit could be the final push into insolvency for many. The sector is caught in a vicious cycle: as costs rise, fewer people can afford to go out, leading to declining trade.
With businesses unable to absorb the spiralling expenses, the night-time economy is under threat like never before.
A flash poll conducted among over 200 businesses underscores the gravity of the situation. Nearly half (46%) of respondents expect their workforce to shrink within the next 12 months, while 62% anticipate having to reduce staff numbers and operating hours. The overwhelming majority – 85% – identified rising operational costs as their biggest economic challenge. As a result, 88% of businesses plan to increase their prices in the next year, with more than half (56%) expecting price hikes of between 5-10% just to remain viable.
Michael Kill, CEO of the Night Time Industries Association, issued a stark warning, “The Government is sleepwalking into disaster. Businesses have cut everything they can – jobs, hours, services – just to survive, and yet they’re still being punished. These tax hikes will be the final nail in the coffin for thousands.
“The Government has refused to listen, and now they are actively pushing businesses into collapse. If they do not act now, they will be responsible for the destruction of an entire sector, the loss of countless jobs, and the irreversible decline of our nightlife economy.”
The impact will be widespread: businesses will shut down, communities will suffer, and thousands of jobs will be lost. The Government’s failure to provide support has placed an already fragile sector in further jeopardy.
The message from business owners is clear: time is running out. Immediate action is needed to prevent lasting damage. The Government must urgently reconsider these tax increases or introduce alternative relief measures before it is too late.
Without urgent intervention, the night-time economy faces an unprecedented crisis – one that will leave lasting scars on businesses, workers, and communities alike.
