Chancellor's budget sparks alarm as nightlife businesses say Treasury modelling fails reality, new flash poll shows
11 December 2025 - Press releaseThe lights are dimming on Britain’s night-time economy. From buzzing pubs to packed music venues, local businesses are sounding the alarm after a new flash survey of 345 night-time economy businesses revealed that the Chancellor’s latest Budget will hit them far harder than anticipated.
Rising rates, real fears
Over half of the businesses surveyed now expect business rates rises of more than 30%, while almost one in five face hikes of between 76% and 100%. Some operators report increases exceeding 100%, with only 3% expecting rises of less than 5%.
Over half of the businesses surveyed now expect business rates rises of more than 30%, while almost one in five face hikes of between 76% and 100%. Some operators report increases exceeding 100%, with only 3% expecting rises of less than 5%.
UK Night-Time Economy Under Pressure - Key Survey Findings:
- Nearly half of night-time businesses expect business rates to rise by 50% or more, with some nightclubs facing increases above 100%.
- 87% plan to raise prices, while 75% intend to cut staff hours or reduce their workforce to cope with rising costs.
- 40% may reduce opening hours or services, and 10–15% could be forced to downsize or close premises.
- Businesses overwhelmingly call for tax relief, highlighting business rate reductions, VAT cuts, and NIC relief as critical support measures, with a clear message suggesting that the short term transition relief will only stem off the inevitable.
- Nightclubs and live music venues are particularly vulnerable due to high rateable values and insufficient support.
- Uncertainty over long term annual rate increases is a major concern, limiting businesses’ ability to plan and threatening the long term sustainability of the night-time economy.
Voices from the ground...
A nightclub operator commented:
"We’ve spent years building loyal customers. A sudden 70% hike could wipe all that out overnight."
A nightclub operator commented:
"We’ve spent years building loyal customers. A sudden 70% hike could wipe all that out overnight."
A café manager facing a 45% increase said:
"We’re still paying off post-pandemic debts. How are we supposed to survive this?"
"We’re still paying off post-pandemic debts. How are we supposed to survive this?"
A live music venue operator added anonymously:
"They call it ‘modest’ in Whitehall. On the ground, it feels like a death sentence. Every extra pound we pay in rates is a pound we can’t spend on staff or artists."
"They call it ‘modest’ in Whitehall. On the ground, it feels like a death sentence. Every extra pound we pay in rates is a pound we can’t spend on staff or artists."
Treasury modelling “fundamentally broken”
Michael Kill, CEO of the Night Time Industries Association (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."
Michael Kill, CEO of the Night Time Industries Association (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."
Industry representatives argue that the Government’s modelling:
- Underestimates real rental and turnover pressures in hospitality
- Fails to account for post-pandemic debt burdens
- Ignores cumulative cost shocks from energy, staffing, and inflation
One bar owner summed it up bluntly:
"We’re looking at doubling what we pay. It’s terrifying. The Government doesn’t see what this actually does to a business trying to survive."
"We’re looking at doubling what we pay. It’s terrifying. The Government doesn’t see what this actually does to a business trying to survive."
Call for immediate action
Kill added: "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."
Kill added: "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."
Submit news or a press release
Want to add your news or press release? Email Paul or Kevin
Two week FREE trial