Editorial
28% of Businesses Gone, 75,000 Jobs Lost: NTIA Warns Government Is Allowing Its £160bn Night-Time Economy Collapse
Britain has lost over a quarter of its late-night economy, tens of thousands of jobs, and a growing share of its global cultural identity, and it is still happening.
“The night-time economy is not a side show. It is a cornerstone of who we are as a country.” Rt.Hon Angela Rayner
New findings from the NTIA Night Time Economy Market Monitor, produced in conjunction with NIQ, show that 2025 marks a critical breaking point for the UK’s night time economy, with closures accelerating, productivity stalling and confidence draining from town and city centres after dark.
The scale of the damage:
- Late-night venues fell by 4.1% in 2025
- The late-night economy is now 28.2% smaller than before COVID
- Nightclubs have declined by more than 35% since 2020
- Late-night bars fell by 4.9% in a single year
- Over 75,000 jobs lost across 2024–25
- Real-terms night time spending remains 10% below 2019
- Productivity growth stalled at just 1.5%
- Over 2 million jobs remain dependent on the night time economy
This is no longer a warning sign. It is evidence of systemic failure.
A £160bn economy being taxed and regulated out of existence
The night time economy generates nearly £160 billion annually, underpins the UK’s visitor economy, supports music, culture and the creative industries, and provides large-scale employment for young people.
Yet the Monitor shows a sector trapped in a vice:
- Rising labour, energy and compliance costs
- Falling footfall and volume sales
- Late-night transport and safety failures
- A tax burden designed for stability, not survival
Growth in 2025 was driven by price inflation, not demand, with food and drink volumes falling by up to 6%. Businesses are absorbing costs they cannot pass on, and closing as a result.
Andy Burnham, Mayor of Greater Manchester showed support for the sector at the Night Time Economy Summit saying “I would argue for a VAT rate more consistent with what you find in Europe because of the social value that your businesses bring to places and towns that need that life injected into them.” He also said “I personally would permanently support a lower business rates regime for hospitality businesses for exactly the same reason.”
Rt.Hon Angela Rayner also stated in her keynote speech at the summit “This isn’t about special treatment. It’s about creating a shared tax burden and an equitable environment.” adding “National Insurance contributions for employers. And the business rates valuation system, which too often fails to reflect how modern, cultural, night-time businesses actually operate.”
Green Party Leader Zack Polanski, who also attended the summit said “I’m here today because people are really struggling, their bills are going up and wages are not rising and this is particularly hitting the night time industries. They’ve been affected by a series of catastrophic decisions by the Government, from business rates to the rise in National Insurance and actually what we need to be doing is supporting workers and the night time economy, by not supporting multi millionaires and billionaires, but supporting small businesses and medium businesses that just trying to get by.”
Two economies, one being abandoned
The data exposes a widening divide.
While the evening economy grew by 0.9% over the year, and experiential venues such as cocktail, craft and themed bars expanded rapidly, the foundations of the late-night economy continue to erode.
Consumers have not stopped socialising. They are responding rationally to:
- Unreliable late-night transport
- Heightened safety concerns
- Rising travel and living costs
- Declining confidence in city centres after dark
Late-night venues cannot simply “open earlier” to survive. Their value, cultural, social and economic – exists because they operate after dark.
The cost to Britain’s global reputation
The night time economy is not just domestic infrastructure – it is part of Britain’s global brand.
Rt.Hon Angela Rayner supported this sentiment in her keynote speech at the Night Time Economy Summit stating that “The night-time economy is not a side show. It is a cornerstone of who we are as a country.” adding “Economically, its contribution is enormous, supporting millions of jobs, driving tourism, powering local economies, and sustaining supply chains that stretch far beyond our high streets.”
It drives tourism spend, extends visitor dwell time, supports live music and nightlife exports, and shapes how the UK competes with global cities that are actively investing in their night-time offer.
As venues close, Britain risks becoming a country that switches off early, losing talent, visitors and cultural relevance to cities that understand nightlife as an economic asset, not a problem to be managed.
Evidence that policy intervention works
Where the government has acted, the results are clear.
- Central London saw late-night venue growth of 2.7%
- Areas with investment in transport, safety and public realm outperformed national trends
This is proof that decline is not inevitable, but neglect is decisive.
Industry voices
Michael Kill CEO of the Night Time Industries Association, said:
“This is what happens when a £160bn sector is loaded with rising costs and then left to absorb shock after shock without support. Losing over 28% of late-night venues is not market evolution, it is policy failure.
If the government wants growth, jobs and a competitive visitor economy, it must act now. That means an urgent economic support package, including a VAT reduction for hospitality and night-time businesses, before more venues and livelihoods are lost.”
Sacha Lord, Chair of the Night Time Industries Association, added:
“Nightlife is economic infrastructure, cultural capital and a global calling card for the UK. Other countries understand this and invest accordingly.
We are allowing Britain’s night-time identity to erode through inaction. A targeted VAT cut, alongside transport and safety investment, is not a bailout, it’s a growth policy. The cost of doing nothing will be far higher.”
Reuben Pullan, Senior Insight Consultant at NIQ added:
“2025 has proven to be another tough year for the hospitality sector, and even more so the night time economy. While pockets of success demonstrate an innovative, adaptable sector, the rising cost of doing business is applying an indiscriminate pressure on the industry.
These operational squeezes, and shortfalls in late night infrastructure, are further complications when many venues are trying to navigate a crucial moment of evolution.”
A call for an emergency night-time economy package
The NTIA is calling on government to deliver an urgent economic support package, including:
- A VAT reduction for hospitality and night-time businesses
- Action on rising labour and operating costs
- Investment in late-night transport and safety
- Reform of licensing and business rates
- A coordinated national night time economy strategy
Rayner also supported the idea of having a dedicated minister to support the sector saying “I would support the government in having a named minister with responsibility for the night time economy, to champion the sector inside government, and ensure that the voices of small and medium businesses are heard loud and clear,”
2026 must be the year the government decides whether Britain has a future after dark.
Because once venues close, culture disappears, and recovery becomes exponentially harder.