NTIA backs Andy Burnham’s calls for lower hospitality VAT rate

The Night Time Industries Association (NTIA) has backed calls by Greater Manchester mayor, Andy Burnham, to slash VAT across hospitality and the wider late-night economy. 

It comes as the trade body warned that the sector cannot survive three more years of economic uncertainty, rising taxation and mounting financial pressures under the current political leadership. 

According to trade officials, further tax increases or continued economic instability would have “devastating” consequences for British entertainment, employment and culture. 

Industry leaders believe the UK night-time economy has reached a tipping point after battling increased National Insurance contributions, punitive business rates and escalating energy costs. 

As a result of this financial strain, there has been a wave of venue closures, cancelled events and reduced investment across local social infrastructure.

The NTIA has stressed that while the organisation remains politically independent, its responsibility is to champion policies that support long-term survival. The association is focusing its engagement on political figures best positioned to effect meaningful change in the near term.

Trade leaders added that a reduction in VAT would deliver immediate benefits, helping to protect jobs, stimulate consumer spending and safeguard cultural spaces. With three years remaining in the current parliament, the organisation warned that operators cannot afford further delays or additional taxation.

Michael Kill, chief executive of the NTIA, said: “We are apolitical as an organisation, but we are not neutral when it comes to the survival of our industry. The hospitality and night-time economy sectors are under more pressure than at any point in recent memory. Businesses are being crippled by taxation at a time when margins have been eroded, consumer confidence remains fragile and operating costs continue to rise.

“For years, we have called for meaningful action on VAT, National Insurance contributions and business rates. Yet despite overwhelming evidence that the current system is failing businesses, very few political leaders have been willing to engage with the reality facing our sector.”

He added: “At the Night Time Economy Summit earlier this year, speaking alongside former deputy prime minister Angela Rayner before an audience of industry leaders and national media, Andy Burnham publicly acknowledged that the current taxation model is failing businesses and made clear that VAT must be part of the solution.”