UK town centres turned into 'night time deserts' fuelled by 2 Rachel Reeves hikes

Town centres across the UK are being turned into "night time deserts" due to soaring costs. The latest figures show that one in four late-night venues have closed since 2020.

According to the Night Time Industries Association (NTIA), nearly 800 businesses have shut for good in this time, leaving just 2,424 late night venues across the nation. Losses have increased over the last few months, with experts blaming the closures on Chancellor Rachel Reeves' move to increase the national wage and National Insurance in April.

As reported by the Morning Advertiser, the late-night sector is the worst affected among the hospitality industry since March 2020. The sector has contracted 26.4% compared with 14.2% across the whole industry.

London and Wales are among the hardest hit, with declines of 15.3% and 16.8%. Meanwhile, Birmingham has seen a huge 27.5% drop in late-night venues.

Edinburgh has seen a 13% fall in late-night venues since March 2020 with Liverpool also seeing a 13.19% drop. Greater London's late-night venues also tumbled by 20.8% in this time.

Michael Kill, the CEO of the NTIA, said: "We're witnessing the loss of important social infrastructure from our towns and cities. Nightclubs and late-night venues are more than just places to dance - they're cultural institutions, economic engines and cornerstones of community life."

He added: "The closure of one in four late-night vemues changes the UK's cultural landscape. Small venues nurture new talent, fuelling the success of globalled renowned artists and the creative economy.

"You don't get Ed Sheeran, Dua Lipa, or Oasis without small venues. The collapse of independent venues puts the entire night-time economy as risk."

Karl Chessell, CQA by NIQ business unit director of hospitality and food, said: "These closures have coincided with soaring operational costs - including increases to minimum wage and National Insurance in April - and a continued shortfall in post-pandemic support for independent operators.

"Although we have seen growth in venues such as themed bars and cocktail bars, our nightclubs and traditional late-night bars are cultural assets that we're in danger of losing for good."

In April, Rachel Reeves increased the National Living Wage, for those aged 21 and over, from £11.44 to £12.21 per hour. The National Minimum Wage, for 18 to 20 year olds, also increased from £8.60 to £10 per hour.

National Insurance Contributions increased from 13.8% to 15% from April 6. Both of these moves put an extra strain on businesses across the UK.