Inflation Rises to 3.8% in July - NTIA Warns There is No More Fat to Trim - The Sector is Facing Job and Business Losses
21 August 2025 - Press releaseMichael Kill, CEO, Night Time Industries Association
“Today’s inflation figures, with prices rising to 3.8 per cent in July, underscore the relentless pressure on the UK’s night-time economy. Hospitality and night time economy businesses are facing sharply higher costs for food, energy, and transport at a time when margins are already wafer-thin.
After years of cost-cutting, the sector has reached its limit. There is very little left to trim without impacting quality, service, and staff levels. Many operators have already squeezed margins, streamlined staffing, and absorbed costs wherever possible. Some input costs are rising sharply month-on-month, leaving businesses with little room to manoeuvre without impacting quality or service.
This persistent inflation threatens to impact the night-time economy further, which is still attempting to rebound from the pandemic and subsequent cost pressures. Policymakers need to recognise that sustained price rises do not only hit households but also the very businesses that underpin vibrant city centres and cultural life. Supporting operators to remain viable while maintaining quality and employment is essential if the UK’s night-time economy is to continue thriving.”
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