Rachel Reeve’s Spring Statement shows no hope for nightclubs or UK nightlife.
The Spring Statement was meant to be a routine update on the public finances but Reeves made more extensive changes after her plans were blown off course by lower growth and higher government borrowing costs. Reeves has insisted she is determined to keep a firm grip on Government finances.
Labour was elected to “bring change to our country, provide security for working people and deliver a decade of national renewal” – said Reeves; and yet there is little positivty to be taken from this mini-budget. Welfare cuts means more than 3 million families will lose an average of £1,720 a year in real terms. As a result, the number of people living in relative poverty will rise to nearly 14.5million.
For nightclubs, there is no improvements, support or legislation mentioned – despite constant calls in recent months by trade organisation leaders and campaigners. Instead, the fact that the general public are now on average £500 worse off per year, consumer spending is set to reduce in pubs, clubs and bars
Once again, our words of warning have fallen on deaf political ears. Trade organisations are left appalled.
What have the leaders of trade organisation said about the Spring Statement?
UKHospitality chief executive Kate Nicholls said: “Growth won’t just happen without a plan. Today’s statement was yet another missed opportunity to avoid an April cliff edge which will level a devastating £3.4bn annual increase to the sector’s tax bill. The government’s own analysis shows the failure to address the employer NICs threshold will force businesses to freeze recruitment, reduce hours available for staff and reduce employment levels in the very sectors the government needs to achieve its goal to get people off welfare. If the government is serious about getting Britain working, it needs hospitality. When we were backed after the financial crash and the pandemic, we proved how we can help drive economic recovery. Our new research this week proves that hospitality and the foundation economy are essential to the overnment’s plan to create jobs where they’re needed, not just in clusters in the south east. There is still time for the chancellor to act and avert this disaster. Now is the time to back hospitality, delay the changes to employer NICs and work with us to bring forward a plan for the high street that can deliver socially productive growth and opportunities to get people back into work.”
Michael Kill, chief executive of the Night Time Industries Association, said: “The NTIA is outraged by the chancellor’s latest statement – a reckless dereliction of duty that blatantly disregards the night-time economy’s desperate need for support. Once again, the government has ignored the mounting evidence of economic devastation in our sector, doubling down on disastrous fiscal policies instead of taking decisive action to foster genuine growth and stability. Despite repeated warnings and relentless lobbying to reverse the crippling measures introduced in the autumn statement, the government has chosen inaction, condemning businesses to a bleak and uncertain future. Rather than seizing the opportunity to implement critical long-term reforms, this Statement signals yet another nail in the coffin for an industry already pushed to the brink. With crushing tax hikes set to take effect in April, the night-time economy now faces a worsening crisis that threatens widespread closures, mass job losses, and economic stagnation. The chancellor’s failure to introduce meaningful financial relief is not just negligent – it is a direct attack on the viability of an industry that contributes billions to the UK economy. The NTIA demands immediate and substantial intervention. The government must act now before it is too late.”
Emma McClarkin, chief executive of the British Beer and Pub Association, said: “The spring statement was the perfect chance to sow the seeds of growth, but the government missed the opportunity, has not listened to business, and we can now expect to see prices rise, jobs at risk, and growth downgraded. For a government whose mission is growth, there is an alarming lack of a plan to boost the economy, given they’ve buried brewers and pubs under mountains of regulations, rates, and taxes. We now predict that, following the spring statement and taking into account the new costs coming into effect from April, the sector will now face an additional £70m per month, the equivalent of 5,700 jobs per month. We can expect to see pubs close at a faster rate which will risk growth and jobs and hurt the communities who rely on them. Time is of the essence, so if government truly wants to unlock growth and support jobs, they must reform business rates, deregulate, review the new chaotic and punishing EPR fees, and phase in employment costs.”
Independent night time economy advisor Sacha Lord said: “Living standards down, investment down, growth down, confidence down. This is not a viable plan for the hardest working in our society and not the Labour I voted for. Despite the majority of small businesses already making cuts to stabilise themselves ahead of next month’s tax hikes, job losses will be inevitable from April. I fear that in a bid to grow the economy, we’re growing anxiety and unemployment instead. These aren’t just numbers on a spreadsheet, these are real people, real livelihoods and it is clear many small firms feel left behind, with little support and no real understanding of where we are heading.”
Steve Alton, chief executive of the British Institute of Innkeeping, said: “Today’s statement was incredibly disappointing, delivering nothing to allay the fears of operators in our essential sector. Pubs are the very fabric of our society, and despite encouraging trading for many of our members at the beginning of the year, their profitability has been threatened yet again. Incredibly successful operators, who serve their communities, provide flexible employment and incredible career opportunities, can be part of the growth that was at the heart of this government’s manifesto. But the current approach of taxing small businesses to the hilt, means that growth will be impossible, as operators desperately try to manage ever rising costs, being forced to cut services, opening hours and staffing levels to ensure they survive. Without support via a fair and reduced taxation on these bricks and mortar businesses, we stand to lose so much. They have failed communities everywhere.”
Dee Corsi, chief executive of London business consultancy New West End Company, added: “Today’s Spring Statement underscores the harsh reality; that the UK’s economic outlook remains challenging, and the support many businesses urgently need is still missing. Key to this is the looming hike in business rates, which is a major barrier to the government’s growth agenda, threatening to hit retail, hospitality, and leisure businesses hardest, with potentially devastating consequences. Just as important is the continued absence of tax-free shopping, which cost West End businesses £640m last year, hampering the UK’s global competitiveness and stalling any growth potential. We urge the government to reconsider their proposed reforms to protect businesses on flagship UK high streets, attract inward investment, and support national and local growth.”
If you are a also appalled by the Government’s disregard for the nightlife industry – then take your sentinment over to our new campaign: The Nightlife Revolution.
The Nightlife Revolution was created because of the failings of the Government to adequately support nightclub and bar owners, and to reflect the strength and unity of the nighttime industry.
