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A survey from the Night Time Industries Association (NTIA) has shown that 90% of businesses in the UK’s nightlife sector are experiencing devastating financial impacts.
The government’s recent Budget saw a reduction of relief from 75% to 40% which could cost venues around £7m ($9m/€8.5m) and the loss of 12,000 jobs.
The survey also found that 40% of respondents warned that they could be forced to close within the next six months unless urgent support is provided.
“The NTIA survey is a clear contradiction of the government’s claims that the Autumn Budget is ‘pro-growth’,” read an NTIA statement.
“In reality, it has created a hostile environment for one of the UK’s most dynamic sectors, threatening to dismantle an industry that is crucial to the country’s economy and cultural fabric.
“The night-time economy not only contributes £100bn annually but also provides millions of jobs and is one of the largest employers of young people in the country – a demographic hit hardest by recent economic pressures.”
Prior to the Autumn Budget, night-time economy businesses were already having to deal with a 30-40% increase in operating costs.
Consumer spending has also fallen thanks to a decrease in disposable income, resulting in reduced revenues.
“The Autumn Budget has effectively signed a death sentence for many night-time economy businesses across the UK,” said NTIA chief executive Michael Kill.
“This sector, which contributes over £136bn to the economy and employs over two million people – especially young people under 30 – is being pushed to the brink.
“The government’s ‘pro-growth’ claims ring hollow in the face of policies that are, in reality, crippling the very industries that drive economic vitality, social cohesion, and cultural richness.”
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