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Britain’s night time economy has greeted Andy Burnham’s expected arrival in Downing Street with something it has not felt in years: optimism. But its trade body has attached a condition, warning the incoming Prime Minister that “optimism must now be matched with action”.
The Night Time Industries Association (NTIA), which represents nightclubs, bars, live music venues, festivals and event businesses, said Burnham’s elevation marks a new chapter for business and the night time economy, one that could finally give operators the confidence to invest.
“As the country prepares for Andy Burnham’s expected appointment as Prime Minister, we welcome the clear commitment to engagement with business and the recognition that economic growth will be built through partnership,” said Michael Kill, the association’s chief executive.
“For too long, businesses across the night time economy have faced uncertainty, inconsistent policy and a lack of clear direction.”
Burnham, the Greater Manchester mayor turned Makerfield MP, remains the only declared candidate to succeed Sir Keir Starmer as Labour leader and is expected to enter No 10 later this month.
The sector has reason to believe it has the incoming leader’s ear. Burnham has already pledged a 20 per cent business rates cut for pubs, clubs and music venues, funded by higher levies on online retailers’ warehouses, and last month the NTIA threw its weight behind his call for a hospitality VAT cut, arguing the sector could not withstand three more years of rising taxation.
Kill said devolution should be part of the answer. “We hope this marks the beginning of a more collaborative approach that gives local leaders the confidence to make decisions that reflect the needs of local businesses and communities.
“A renewed focus on our high streets, hospitality and the night time economy will be essential if we are to unlock investment, create jobs and support thriving towns and cities.”
The stakes for operators are hard to overstate. More than three licensed venues a day went dark in the first quarter of this year under the combined weight of wage costs, energy bills and tax rises. And while the government replaced retail, hospitality and leisure relief with permanently lower business rates multipliers from April, many operators say their bills are still heading in the wrong direction.
Kill was clear that goodwill alone will not keep the lights on. “For our sector, optimism must now be matched with action. Clarity, certainty and meaningful collaboration will be essential if businesses are to invest with confidence and plan for the future.
“We are encouraged to see a leader who appears fully engaged with the opportunities and challenges facing British business, particularly our sector, which has borne some of the greatest pressures over the past six years through rising taxation, escalating costs and an increasingly difficult trading environment.”
For SME owners across hospitality, nightlife and the high street, the significance is less the warmth of the welcome than the specificity of the demands now piling up in the new Prime Minister’s in-tray: business rates, VAT, energy costs and a devolution settlement that lets local leaders act.
Burnham arrives in office with the sector’s goodwill banked. Spending it wisely will be the harder part.
“The work starts now,” Kill said, “and we stand ready to work constructively with the new government to ensure the night time economy is recognised as a vital part of the UK’s economic growth, cultural identity and community life.”
