NTIA Calls for Clarity as Spending Review Brings Mixed Signals Amid Autumn Budget Tax Increase Fears
12 June 2025 - Press releaseThe UK’s night-time economy stands at a critical juncture following the Chancellor’s recent Spending Review, which announced unprecedented capital expenditure during this Parliament. While elements of the review offer cautious optimism, including long-term commitments to infrastructure and energy investment, many within the night-time economy are deeply concerned about how these ambitions will be funded, with fears mounting over possible tax increases in the Autumn Budget.
The Spending Review recognised the role of cultural and hospitality sectors in the UK’s broader economic recovery and included positive signals around regional regeneration and infrastructure development. However, these commitments provide limited immediate relief for late-night operators, particularly independent businesses, who are facing the dual challenges of ongoing instability and constrained access to finance. The sector has already contracted by 15.8% in recent years, with cost pressures and debt repayments continuing to impact viability.
Michael Kill, CEO of the Night Time Industries Association (NTIA), said:
“We appreciate that the government is trying to balance many competing demands. But for our sector—already absorbing tax hikes from April, the prospect of further increases is alarming. Additional financial pressure could tip many businesses over the edge, particularly given high operating costs and limited access to investment.”
The NTIA welcomed the government’s long-term focus on energy infrastructure, but warned that many challenges facing the sector are urgent and require immediate action. “Energy security for the future is important,” Kill added, “but venues are struggling to keep the lights on today.”
Connectivity and accessibility were also highlighted as critical. While infrastructure investment is welcome, the NTIA stressed that transport and urban planning must reflect the full operating hours of the night-time economy, including the needs of the night-time workforce. Without reliable evening and late-night transport services, the sector’s growth and safety are compromised.
The Spending Review offered little clarity on skills development within the sector, an area the NTIA considers crucial. Training and upskilling must be embedded in a broader national strategy, not treated as isolated policy levers, particularly in hospitality and night-time industries where labour shortages and talent retention remain key concerns.
Another longstanding barrier to growth is access to finance. Many operators, particularly SMEs, continue to struggle with limited borrowing options and restrictive lending conditions, which has stifled both recovery and future investment. The NTIA is calling on the government to provide clearer routes to finance that are tailored to the unique business models of night-time operators.
Despite modest signs of sectoral resilience in Q1 2025, the NTIA warns that the cumulative effects of fiscal tightening could spark another wave of closures. With the night-time economy contributing over £153 billion to the UK economy annually and employing more than 2.11 million people, its continued decline would deal a significant blow to national recovery, local economies, and cultural vibrancy.
“We need a budget that understands our value,not one that inadvertently accelerates decline,” Kill concluded. “The government must work in partnership with us. The capital investment plans may look bold, but the devil is in the detail. We need immediate support, clear fiscal strategy, and genuine engagement ahead of the Autumn Budget if we are to safeguard a safe, thriving, and sustainable night-time economy.”
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