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Rachel Reeves, the UK Chancellor of the Exchequer, unveiled the 2025 Budget last week, outlining major tax reforms, spending pledges and sector-specific measures expected to reshape the landscape for nightlife and hospitality across the country.
Concerns from organisations including the Music Venue Trust and the Night Time Industries Association (NTIA) were quickly validated, as the Budget confirmed that Business Rate Multipliers will rise for properties valued above £500,000, with further increases for assets over £51,000. At the same time, the government announced a £4.3 billion support package — including a new Small Business Scheme — aimed at helping nightlife and other industries still recovering from the pandemic.
Despite this injection of support, NTIA CEO Michael Kill called the Budget a “hammer blow” to an “already fragile” sector. Kill warned that inflation, soaring everyday costs and diminishing disposable income are pushing both businesses and consumers to breaking point. With VAT obligations, quarterly rent and new tax pressures converging in January, he anticipates many venues may be forced to shut their doors.
The Budget also confirmed a 4.1% rise in the National Minimum Wage to £12.71 per hour, alongside an 8.5% increase for 18–20-year-olds. While the rise could boost spending power among young people – a demographic vital to nightlife – Kill emphasised that the additional wage burden will strain venues already operating on razor-thin margins.
Meanwhile, a new “ride-sharing tax” will introduce a 20% VAT on all journeys booked through apps such as Uber and Bolt, potentially increasing the cost of getting home from nights out across major UK cities. In a response to The Standard, Uber said the move will mean “higher prices for passengers in London, and less work for drivers,” adding that the change creates a contradictory tax landscape where a London trip will be taxed at a different rate than elsewhere in the country.
The full UK Government Budget 2025 is available to read online.
