In a crucial move ahead of the Spring Budget announcement on March 6, 2024, the Night Time Industries Association (NTIA) has gained the support of the Institute of Hospitality for their #LeaveNoOneBehind campaign. This collaborative effort aims to advocate for the survival and recovery of the 20,000+ businesses within the UK's hospitality and late-night economy sectors.
As the hospitality industry faces unprecedented challenges, the NTIA stands firm on its commitment to inclusivity, rejecting the exclusion of wet lead sales businesses experienced during the pandemic. This united support comes at a pivotal moment, emphasising the urgency of addressing the dire situation faced by companies within the nighttime economy and broader hospitality sector.
Since 2020, over 23,000 businesses have closed their doors, with more than 6,000 establishments shutting down in the past year alone. The impact of rising costs and financial burdens has pushed these industries to a breaking point, doubling the number of businesses entering administration. The NTIA's recent survey revealed that 7 out of 10 firms are either barely breaking even or operating at a loss, with nearly half expressing doubts about their survival in the next 12 months.
Michael Kill, CEO of the Night Time Industries Association, stresses the importance of collaboration with the Institute of Hospitality, calling for a reduction in VAT to 12.5% for all businesses within these sectors across the UK. The urgency of this initiative is underscored by the need to safeguard the survival of these enterprises during tumultuous times, urging the Chancellor to uphold this commitment and emphasise inclusivity in recovery endeavours.
Institute of Hospitality CEO Robert Richardson FIH MI echoes this sentiment, acknowledging the harsh economic climate and the crucial need for additional support. He emphasises the campaign's role in protecting the future of members and every community across the UK.
Sacha Lord, co-founder of Manchester's Parklife Festival and Warehouse Project and a key figure in the nightlife industry, expresses full support for the #LeaveNoOneBehind campaign. Lord emphasises the critical need for a reduction in VAT to 12.5% across all hospitality and nighttime economy businesses nationwide, urging the Chancellor to stand by this commitment and ensure that no one is left behind in the recovery efforts.
With the cost of living on the rise and discretionary spending under threat, the consequences of inaction are profound for businesses and the individuals and families depending on them. In response, the NTIA calls on the government to implement urgent measures in the Spring Budget, including a reduced VAT rate of 12.5% and freezing Alcohol Duty for the next 12 months. These measures are essential for providing businesses with the financial headroom they need to survive and recover.
We must act now to ensure no one is left behind and our vibrant nighttime economy can once again thrive. The future of these businesses and the communities they serve hangs in the balance, making support in the Spring Budget a critical step towards recovery.
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