Night clubs and bars say tax rise could force dance venues to close in London, Manchester, Liverpool, and more

• The UK nightclub industry warns that planned tax hikes in April 2025 could lead to more closures
• Data shows a decline of over 40% in venues in Wales and Yorkshire since 2020, with Scotland down 30%
• Innovations like sober raves and multi-use buildings have helped businesses weather financial challenges
• Despite some improvements in late 2024, industry leaders fear the future remains uncertain

The UK nightclub industry has warned that planned tax hikes in April could push more venues "to the brink of closure," despite data showing a slowdown in nightclub closures year-on-year in 2024.

The Night Time Industries Association (NTIA), which represents nightclubs and live music venues across the UK, reported the number of venues slipped by 13 to 835 at the end of the year.

It came as new openings were more than offset by nightclubs and bars shutting their doors for good. Since March 2020, the sector has lost 405 venues, largely due to the impact of Covid-19 lockdowns and the strain they placed on businesses.

But Michael Kill, the NTIA's chief executive, said “the uncertainty heading into 2025 is more concerning than anything we saw during the pandemic,” and warned that further challenges lie ahead due to the impending rise in costs.

Concerns have arisen following Labour’s 2024 autumn Budget, which announced a rise in employers’ national insurance contributions from 13.8% to 15%, a change expected to generate £25 billion for the Treasury.

The Budget also introduced reduced business rates relief, adding to the new pressures faced by businesses, alongside an increase in the national minimum wage. All of the new measures will take effect from April 2025 onwards.

Despite facing economic and practical challenges, innovations like sober raves and repurposing buildings for various uses have helped businesses weather financial difficulties. But bosses have expressed ongoing concerns about the upcoming tax hikes.

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Kill said: “The additional financial burden from the planned tax increases in April 2025 could drive many more businesses to the brink of closure. Operators are working on fine margins and many have exhausted all possible avenues to cut costs.

“The long-term strategy rhetoric is important, but there must be a recognition and consideration for the immediate challenges, which are substantial, as we risk further closures and job losses. This environment for many is unsustainable.”

The NTIA’s data revealed a decline of over 40% in the number of venues in Wales and Yorkshire since 2020, with Scotland seeing a decrease of 30%. London experienced a smaller decline over the four-year period, with a drop of just under 20%.

But the trade body pointed out improvements in the final quarter of the year, often referred to as the "golden quarter."

As the nightclub industry faces these looming challenges, we want to hear your thoughts. How do you think the planned tax hikes will impact local venues? Share your opinions in the comments section.