Britain's nightlife doesn't need sympathy - just ministers to stop taxing us out existence

You can’t keep piling costs onto venues and then act surprised when they close.

The proposed 20% reduction in business rates for hospitality, leisure and retail businesses is a welcome admission that something has gone badly wrong. But if ministers are serious about reviving Britain's nightlife, they shouldn't wait. Bring it in sooner, make it permanent and go one step further by cutting VAT for hospitality and entertainment to 9%, bringing Britain closer to much of Europe.

This is about more than just about pubs, clubs or live music venues; it's about the entire ecosystem that depends on them.

When people come to a Dreamboys show, they rarely just buy a ticket. They book restaurants, jump in taxis, stay in hotels, have drinks afterwards and often grab food on the way home. The same applies to concerts, comedy nights, theatre productions and live events across the country.

One successful venue is an economic catalyst that supports dozens of other businesses, and one busy Friday night keeps taxi drivers working, fills hotel rooms, creates shifts for bar staff, security teams, technicians, cleaners and caterers.

Yet for years we've treated these industries as though they're somehow less important than others.

Britain's night-time economy contributes billions to UK PLC and employs huge numbers of people. When venues disappear, it's not just landlords who lose out. High streets become quieter, town and city centres feel less safe, jobs disappear and local economies suffer.

The irony is that many of these problems have been made worse by government policy. Higher business rates and increased National Insurance contributions, leading to rising employment costs, landed at precisely the moment many operators were still trying to recover from the pandemic and the start of the cost-of-living crisis.

Businesses didn't suddenly become badly run. It was the goalposts that moved. Many were forced to increase prices, delay investment or reduce staffing simply to survive, others closed their doors or cut the number of days they opened.

That's why it's encouraging that ministers appear willing to change course. Admitting a policy isn't working and taking a common sense approach is a positive sign.

But tinkering around the edges won't be enough because if Britain genuinely wants thriving town and city centres, hospitality cannot continue to be taxed as though it's a luxury.

Look across Europe and many countries recognise this. Lower VAT rates help businesses invest, employ people and keep prices attractive for customers. Britain should be asking why we're making it harder than our competitors to run successful hospitality businesses.

There are also lessons closer to home. Andy Burnham has consistently understood that nightlife isn't an inconvenience but an economic asset to be protected. Manchester has shown what happens when political leaders actively champion the evening economy instead of seeing it as an afterthought.

We spend plenty of time talking about economic growth and here's an obvious place to find some.

Give businesses certainty by reducing the tax burden, encouraging investment and helping venues survive long enough to thrive, then the returns won't stop with venue owners.

They'll be felt by performers, production crews, taxi drivers, takeaway owners, hotels, retailers and thousands of small businesses that rely on busy evenings to make a living.

The proposed business rates cut is a step in the right direction and the new Prime Minister deserves credit for recognising that previous decisions placed too much pressure on the sector.

Now he needs the courage to finish the job because Britain's nightlife needs more than warm words. It needs a government that stops taxing what could again be one of the country's biggest economic success stories into decline.

____________________

Alice Woods is the owner of Dreamboys.

LBC Opinion provides a platform for diverse opinions on current affairs and matters of public interest.

The views expressed are those of the authors and do not necessarily reflect the official LBC position.

To contact us email opinion@lbc.co.uk