Night time venues need support to survive in 2026, says NTIA

The Night Time Industries Association (NTIA) is calling on the UK government to offer business rates relief, conduct revaluation reviews, and protect the economic and cultural contribution of night-time venues.

The trade association representing nightlife in the UK night-time economyargues the proposed measures are needed because 2026 will bring unsustainable operating costs, with nearly half of venues expecting business rates to rise by 50% or more, according to a poll of 345 nightlife business operators.

Rising rates come on top of already elevated costs, including wage increases, national insurance hikes, alcohol duty, and other tax pressures, placing venues in a position where staffing, pricing, and opening hours may need to change just to remain viable.

NTIA CEO Michael Kill said: "The night-time economy is managing significant cost pressures. Transitional relief will help, but it is temporary.

"The recent revaluation has pushed many city nightclubs into higher multipliers, even as wage, national insurance, alcohol duty, and other tax costs have risen.

"Without targeted support, venues will face difficult decisions around staffing, pricing, and opening hours.”

They added: “The night-time economy supports jobs, tourism, and local vibrancy. With proportionate policy measures, these venues can remain sustainable and continue to enrich communities and city life."

One nightclub operator said: "We’re not talking about growth, we’re talking about survival. Staff livelihoods, community spaces, and nights out are all at stake if costs keep rising like this.”

Operators report that running costs are 30% to 40% higher than in 2020, driven by two Autumn Budgets increasing tax pressures, two minimum wage rises, lower thresholds for Employer National Insurance contributions, alcohol duty increases, and business rates revaluations pushing many venues into higher multipliers.

Currently, night-time venues enjoy 40% business rates relief, but this ends in 2026. Combined with higher rateable values, city-based nightclubs and late-night venues are facing what the sector describes as a “perfect storm” of unsustainable operating costs.

These pressures are translating into practical trade-offs for operators, including reduced opening hours, higher prices, and fewer opportunities for emerging artists and performers.

NTIA poll responses revealed 50% of venues expect business rates to rise by 50% or more, nearly 20% face increases of 76% to 100%, 87% plan to raise prices for customers, 75% anticipate cutting staff hours or jobs, up to 15% could see their long-term viability challenged without support.
 
Night time venues need support to survive in 2026, says NTIA