NTIA warns of venue closures after rates relief snub

The Night Time Industries Association (NTIA) has warned of sector decline, following news of the government’s decision to exclude nightclubs and recorded music spaces from its latest business rates relief scheme.

According to the trade body, the decision overlooks the night-time economy at a time when more than a third of British nightclubs have closed. 

The sector currently faces a significant financial imbalance, despite data showing the number of nightclubs has fallen by 32% since 2017. The total rateable value has nevertheless risen to £69.4m.

Remaining venues now carry a higher tax burden. The average rateable value per nightclub has increased 56% to £56k, despite the reduction in the total number of businesses.

NTIA representatives argue that recorded music environments, including listening bars and DJ-led venues, serve as core infrastructure for the UK music ecosystem and support artist development.

The exclusion follows previous industry concerns regarding the Cultural Recovery Fund, where electronic music providers were similarly ineligible for support during the pandemic.

Industry leaders suggest the current policy undermines the creative pipeline and risks further closures, potentially damaging the global cultural standing of the UK.

Michael Kill, chief executive of the NTIA, said: “The decision to exclude nightclubs, grassroots electronic and recorded music spaces from business rates relief is a surreal decision, and could not have expected anything less than anger given the last two budgets.

“Electronic music spaces are not optional extras in the cultural landscape. They are talent incubators that develop the next generation of artists, DJs, promoters and creative entrepreneurs. They are where careers are built, scenes are formed and global exports are born. To exclude them is to undermine the future of the UK’s music industry at its foundations.”

He added: “We have already lost over a third of the UK’s nightclubs, yet the venues that remain are being charged higher business rates than ever, with fewer businesses left to carry the burden and no access to relief. This is not targeted support, it is policy that actively accelerates decline.”