The Spring Statement talks about stability and cautious optimism. But this is not a stable moment – and businesses will not be reassured by rhetoric after two years of relentless pressure. Across the UK, major brands and corporates are collapsing at pace. Confidence is fragile. Margins are exhausted. Investment has stalled.
Consumers are under unprecedented strain. The cost of daily living remains high, household bills are rising again, and disposable income is at a low. When consumers pull back, our sector feels it first and hardest. Businesses cannot grow when customers are simply trying to get by.
Business rates reform and limited relief measures have compounded the pressure. By narrowly targeting support at pubs and live music venues, the Government has marginalised late-night bars, clubs, event spaces and cultural operators. The burden remains disproportionate and unsustainable.
At the same time, we are heading toward another energy price shock. Escalating tensions in the Middle East have already driven Brent crude to $80 a barrel. LNG prices have surged by 30%. Wholesale markets are reacting sharply. For energy-intensive sectors like hospitality, leisure and the night-time economy, this is not abstract economics – it is an immediate and compounding threat.
In addition to this, youth unemployment remains a serious concern. The night-time economy has long been a gateway employer for young people – offering flexible, entry-level roles that build skills and pathways into long-term careers. Yet the increase in National Insurance Contributions and rising employment costs have made it harder, not easier, to sustain those jobs. We are squeezing the very sectors that absorb and train young talent.
The visitor economy faces additional headwinds. Geopolitical instability threatens inbound tourism, particularly from eastern markets, while energy and supply chain costs continue to erode already wafer-thin margins. Against this backdrop, talk of “stability and positivity” feels disconnected from the reality on the ground. Businesses do not need reassurance – they need decisive intervention.
And the political context cannot be ignored. Following the recent by-election results, the 7 May local elections will arrive quickly. Communities are paying close attention to jobs, high streets and local economic vitality. The night-time economy is central to all three.
If growth is truly the Government’s mission, then meaningful action must follow.
Start with a VAT cut for hospitality and the night-time economy – a proven lever that stimulates demand, protects jobs, restores confidence and ultimately increases tax revenue through economic activity.
Businesses are not asking for optimism. They are asking for realism, partnership and leadership.
The time for action is now.
