High Demand for Night-Time Economy, but Late Night Levy 'Must Go'

New figures from the Office for National Statistics (ONS) shows hospitality is fuelling the night-time economy but worr ying trends are emerging, par ticularly the loss of 800,000 workers in the past six years

Nightclubs, bars, restaurants and cafes are responsible for 42% of customer spend after 6pm, the largest of those examined by the ONS, which demonstrates the strong public demand for our late-night offering

The figures show the sector remains a key employer, with 8 7 million people working at night, but the significant loss of workers over the past six years and the continued drain on turnover by the Late Night Levy is preventing venues taking advantage of high demand

UKHospitality Chief Executive Kate Nicholls said: This new data shows how impor tant the night-time economy is to communities across the UK; as a critical employer and its role driving footfall to towns and cities to visit our late-night venues

“Hospitality is the main attraction in the night-time economy, with almost half of consumer spend taking place there , but there s so much more we can do if barriers to doing business are removed The loss of nearly a million workers from the sector just shows the pressure it is under

“The Late Night Levy can be one of the main drains on business, costing venues £365,000 last year and stifling the sector’s recover y from the pandemic Its introduction has been a failure and removing such an ineffective levy, which local authorities and a House of Lords Committee both concluded has not been successful, would provide much-needed relief for affected venues

“After a pandemic where late-night venues could scarcely open and now a cost-of-living crisis, we need to see a concer ted effor t by Government and local authorities to back our night-time economy

Suppor ting positive measures such as the agent of change principle would be a great help to the sector, as would planning and licensing policies that recognise the benefits the late-night sector brings ”

Ntia Poll Backs Calls For Levy To Be Scrapped

Over three quar ters (77%) of businesses in the night-time economy have called for the late night levy to be abolished in a sur vey by the Night Time Industries Association

Many across the sector, the sur vey says are seeing this as a “Stealth Tax

” to suppor t local Policing and Local Authority budgets across the UK, but more impor tantly, within the current climate these additional costs are unaffordable and will fur ther erode the limited cash flow these businesses are sur viving on

NTIA FLASH POLL : 306 RESPONDENTS (LNL –LATE NIGHT LEVY)

• 72 2% of Respondents with a LNL area feel it does not meet its objective

• 84 4% of Respondents who do not currently pay LNL felt that a Late Night Levy would not benefit the area they operate within

• 81% of Respondents felt that the LNL would not be affordable in the current operating c limate

• 77% of Respondents felt that The LNL should be abolished

Only nine local authorities, including Newcastle , Southampton and London boroughs Camden and Tower Hamlets, charged a late-night levy in 2022 Several councils, such as Nottingham and Cheltenham, have scrapped the tax in suppor t of the night time economy and hospitality sectors

Michael Kill CEO NTIA says: “It is absurd that the Government is even considering consulting on the expansion of the current late night levy scheme It’s atrociously timed, in the middle of a cost inflation crisis, where the sector is perilously being pushed closer and closer to the edge ”

“The House of Lords review on licensing last year was ver y clear that the late night levy had not met its objectives, wholehear tedly backed by the industr y, suggesting that it is unaffordable and represents no benefit to businesses on the ground ”

NTIA FLASH POLL: 306 RESPONDENTS:

What type of business do you operate?

• 45 9% Nightc lub / Venue / Event Space

• 36 1% Pub/Bar/Restaurant

• 4 9% Hybr id Space

• 4 9% Promoter / Event Organiser

• 4 9% Supply Chain

• 3 3% Other

Where is your business located?

• 77 8% England

• 19% Scot and

• 3 2% Wales

Is your business currently subject to a Late Night Levy?

• 71 4% No / 28 6% Yes

BUSINESSES OPERATING WITHIN LNL AREAS:

Do you believe that the Late Night Levy meets its objectives for the business area you operate within?

• 72 2% No / 27 8% Yes

BUSINESSES NOT OPERATING WITH LNL AREA

Do you believe a Late Night Levy would benefit the area which you operate within?

• 84 4% No / 15 6% Yes

BOTH LNL & NON LNL BUSINESSES

Under the current operational conditions, is a Late Night Levy affordable to your business within your area?

81% No / 19% Yes

What do you think should happen to the Late Night Levy?

• 77% Believe the Late Night Levy Should be abolished

• 9 8% Left to Local Author ities to decide on implementation

• 9 8% Ro led out nationally