Yesterday the Chancellor of the Exchequer Rachel Reeves delivered the Labour Government’s Autumn Budget, which failed to properly address the current crisis in Britain’s nightlife. This lack of support has come after the Night Time Industries Association (NTIA) released a telling report back in September that revealed Britain’s nightlife was in an ‘unprecedented crisis’ as a result of over 60 venues being forced to shut their doors permanently this year.
As the NTIA report expressed the closure of 480 nightclubs between June 2020 and June 2024, many hoped that the first budget from a Labour government in over 14 years would exhibit an increased intervention within the nightlife sector, to rectify closures and revitalise the industry. Instead, the late-night sector has encountered multiple budget cuts, leaving many to criticise the government as the industry is threatened to go extinct.
Reeves announced the business rate relief on small venues will face a £110,000 cap per business in relief to businesses in the retail, hospitality and leisure industry. An overall decrease from its current rate of 75% to 40% as of April next year.
Reeves addresses the business rates relief during the Labour Government’s Autumn Budget at 39:17.
In response to the autumn budget, the Music Venue Trust (MVT) released a press statement revealing the detrimental impact the budget will have on already economically-strained small venues. In the statement the MVT stated: “Over 350 Grassroots Music Venues are now placed at immediate risk of closure, representing the potential loss of more than 12,000 jobs, over £250 million in economic activity and the loss of over 75,000 live music events”.
Over the next few days, please write to your local MP about the urgent need for action to stop the rise in Business Rates and prevent hundreds of grassroots music venues closing.
We’ve made an online resource at https://t.co/6I9NCP5erx to make this as easy as possible to do so. pic.twitter.com/gpNoEsaAto
— Music Venue Trust (@musicvenuetrust) October 31, 2024
The budget also announced Labour’s plans to deliver a lower rate of taxes on physical, hospitality and leisure premises in April 2026.
Although they welcome these changes, the MVT added: “Changes in April 2026 are to be welcomed, but will be of no use for the hundreds of music venues that are now more likely to be lost before this challenge is finally met with a full, long overdue reform”.
As the NTIA have mapped the decline in Britain’s late-night sector over the past few years, the organisation promptly released a statement following yesterday’s budget. They disclosed: “The industry operates in a highly challenging environment and within a fragile ecosystem. The current budget lacks the balanced and targeted support needed to help these businesses endure escalating financial pressures, protect jobs, and sustain community hubs essential to the UK’s cultural landscape, but more importantly, to start the recovery process and ultimately grow!”
NTIA Criticises Autumn Budget Impact On Fragile Nightlife Ecosystem: Extended Tapered Business Rates Relief Extension Insufficient Amid Challenging Sector Tax Hikes. The Night-Time Industries Association (NTIA) criticises the Government, despite the Chancellor extending business… pic.twitter.com/NAcWkezj4G — Night Time Industries Association (@wearethentia) October 30, 2024
The NTIA’s statement featured comments made by NTIA CEO Michael Kill. He stated: “We are in one of the toughest trading environments the UK has seen in decades for our sector, fraught with a legacy of challenges from previous crises. While the Chancellor has listened to our plight, the extended business rates relief is a minor concession amongst the array of tax increases and fiscal shifts, which will take some time to evaluate and consider regarding sector impacts. However, in simple terms it is still double the contribution of the current business rates”.
Today’s Budget will deliver on the promise of change.
Fixing the foundations of our economy.
Investing in our future.
Rebuilding Britain.
— Rachel Reeves (@RachelReevesMP) October 30, 2024
It is evident the Autumn Budget has failed to provide ample aid to the night-life sector in Britain. Government intervention and safeguarding of venues appears to be the most necessary measures needed to promote the repair and growth of the industry. As the industry has been in decline prior to COVID in 2020, the Government’s attempts to support the industry in 2026 may be too little too late for the hundreds of venues facing financial troubles and closures.
