Lyle Bignon, Night Time Economy Ambassador for Birmingham, working on behalf of the Night Time Industries Association, said:
“Today’s announcement by the Chancellor was nothing short of an exercise in ‘smoke and mirrors’.
“By choosing not to cut income tax which could encourage further public spend in the Out of Home Leisure Economy [OHLE] and the Night Time Economy [NTE], and ignoring the calls for a VAT reduction from the business community, Jeremy Hunt has confirmed his Government’s contempt towards millions of culture and hospitality workers across the UK.
“The proposal to further cut National Insurance may produce a minor increase in income for workers. However, the myriad economic pressures facing the general public are likely to swallow up any potential savings from this new fiscal rule.
“Whilst news of a fund for culture and heritage projects in the West Midlands is long overdue, there is a wider regional and national challenge that the Chancellor has failed to meet.
“The Budget details released today do little for businesses and workers in Birmingham – currently facing its most severe financial outlook since the 1970s.
“Arts, culture, entertainment, and NTE in the city are already dealing with incoming hardship as a result of the catastrophic mismanagement of local government.
“Based on today’s decisions by Hunt, we must also continue to contend with a central government intent on broadly ignoring our plight.
“Coupled with the dual threat of local austerity and recession, the chances of music venues, theatres, clubs, arts groups, and other social and cultural community businesses and organisations surviving the coming months now look slimmer than ever.
“The Chancellor speaks of higher growth and of valuing hospitality, but the hundreds of thousands of professionals in Birmingham and the Midlands left without significant support for OHLE and NTE business from today’s speech will undoubtedly make their frustrations clear at the General Election this year.”
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Government Sends Clear Message to Businesses in Spring Budget “You Are On Your Own!” Says NTIA
In the wake of the Spring Budget announcement, the Night Time Industries Association (NTIA) voices profound disappointment and concern over the lack of substantial support for the struggling sector. Characterising the Chancellor’s message as “You are on your own!,” the NTIA emphasises the dire economic challenges facing its members and warns of lasting consequences without adequate assistance.
“The economic challenges faced by our sector are catastrophic, and following today’s spring budget announcement, the lack of support will have a profound impact on this sector for years to come,” stated Michael Kill, CEO of the NTIA. “For months, the entire sector has been providing the Government with critical information outlining our precarious situation and the urgent need for supportive measures to sustain businesses through these turbulent times.”
The decision to freeze duty on alcohol, increase in VAT threshold and expensing while appreciated, falls woefully short of addressing the comprehensive financial support required by businesses. The NTIA warns that the budget’s inaction will only worsen losses, leading to widespread job cuts and economic hardship. This neglect, compounded by the sector’s fragility over the past four years, threatens to push it further into crisis, with long-term implications for employment and tax revenues.
“Even the autumn budget last year, which extended business rates relief, was marred by the Government’s use of it to offset increases in the National Living Wage, demonstrating a pattern of giving with one hand and taking with the other,” added Kill.
The NTIA accuses the Government of prioritising political posturing over the well-being of businesses, suggesting that the budget is more about positioning for the upcoming election than addressing the sector’s needs. Such disregard for the livelihoods and economic contributions of the night-time industry is unacceptable, asserts the NTIA, calling for immediate action and expressing readiness for an early election to effect meaningful change.
“In simple terms, it’s time for change. We have lost faith in the Government,” Kill Stated. “The livelihoods and businesses we represent are not political pawns but vital contributors to community well-being across the UK. It is imperative that the Government recognises this and takes decisive steps to support the sector.”