NTIA warns Budget will drive sharp business rates rises
The findings suggest widespread knock-on effects across pubs, bars, nightclubs and live music venues
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The Night Time Industries Association (NTIA) has warned that the chancellor’s latest Budget will lead to steep increases in business rates, with many clubs and bars facing rises far higher than government projections.
A flash survey from the association of 345 night-time economy businesses found that more than half expect their business rates to increase by over 30%, while almost one in five anticipate rises of between 76% and 100%. Some operators reported potential increases of more than 100%, with only 3% expecting rises of less than 5%.
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The findings suggest widespread knock-on effects across pubs, bars, nightclubs and live music venues. Nearly half of respondents said their rates bill could rise by 50% or more, while 87% plan to increase prices and three-quarters expect to cut staff hours or reduce headcount to manage higher costs.
Around 40% said they may reduce opening hours or services, and between 10% and 15% warned they could be forced to downsize or close premises entirely. Nightclubs and live music venues were identified as particularly exposed because of high rateable values and what operators described as insufficient sector-specific support.
The survey also found strong concern about long-term uncertainty over annual rate increases, which businesses said was limiting their ability to plan and threatening the sustainability of the sector.
Michael Kill, chief executive of the NTIA, said: “This data clearly proves the government’s modelling hasn’t been stress-tested against real business conditions. Our survey shows businesses facing hikes of 30%, 50%, even 100% or more. These are not marginal changes; they are existential threats to businesses that employ thousands, sustain vibrant towns and cities, and drive local economies.
“The government cannot ignore this. Immediate action is required. Without it, we will see closures, job losses, and the hollowing out of our night-time economy. This is a crisis born of bad modelling, and the consequences are very real.”
