Half of night-time venues expect business rates to rise over 50%

Nearly half of Britain’s nightclubs, live music venues and late-night entertainment spaces expect their business rates to rise by 50% or more, raising concerns about the long-term viability of the sector from 2026, according to a survey of operators.

A flash poll of 345 nightlife businesses found that rising business rates are adding to already elevated operating costs, including higher wages, increased national insurance contributions and alcohol duty, leaving many venues warning that current models are becoming unsustainable.

The findings come as a 40% business rates relief for night-time venues is due to end in 2026. Operators say the withdrawal of that relief, combined with higher rateable values following recent revaluations, is pushing many venues into higher multipliers.

According to the survey, around 50% of respondents expect their business rates to increase by at least 50%, while almost 20% anticipate rises of between 76% and 100%. About 87% said they plan to raise prices for customers, and three-quarters expect to cut staff hours or jobs. Up to 15% said their long-term viability could be at risk without additional support.

Operators reported that overall running costs are now 30% to 40% higher than in 2020, driven by two minimum wage rises, higher employer national insurance costs following lower contribution thresholds, increases in alcohol duty and broader tax pressures stemming from recent budgets.

Michael Kill, chief executive of the Night Time Industries Association (NTIA), 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.”

The NTIA is calling on the government to introduce targeted business rates relief for night-time economy venues, review revaluations to better reflect late-night trading conditions, and protect the sector’s economic and cultural contribution through measures such as lower VAT and changes to employer national insurance thresholds.

One nightclub operator, quoted anonymously in the survey, 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.”

The night-time economy supports employment, tourism and local economies across the UK, but industry bodies warn that without policy changes, rising costs could accelerate venue closures and reduce opportunities for artists, performers and hospitality workers.