The nightclub industry has hit out at the UK government’s “chaotic” decision to leave them out of a reduction in business rates and support.
This week (January 27), the government announced a U-turn on a proposal that would have seen pubs and live music venues subjected to some of the sharpest rises in business rates in the country.
Business owners had warned Chancellor Rachel Reeves that the consequences would have been dire and would likely have led to widespread venue closures and job losses, something the government recognised in their decision to introduce a £100million extra support package for pubs and live music venues across England and Wales.
Now, though, the Night Time Industries Association (NTIA) have spoken out on behalf of nightclubs, grassroots electronic music venues and recorded music spaces, arguing that the new business rates relief scheme “explicitly excludes” them.
At a time when the total number of nightclubs in the UK is down 32 per cent since 2017, they have said that there has been a 56 per cent increase in rateable value on nightclubs over the same time period.
Michael Krill, CEO of the NTIA, has said: “The decision to exclude nightclubs, grassroots electronic and recorded music spaces from business rates relief is a surreal decision, and could not have expected anything less than anger given the last two budgets.”
“Electronic music spaces are not optional extras in the cultural landscape,” he continued. “They are talent incubators that develop the next generation of artists, DJs, promoters and creative entrepreneurs. They are where careers are built, scenes are formed and global exports are born. To exclude them is to undermine the future of the UK’s music industry at its foundations.”
He added that due to the closures of a third of the UK’s nightclubs, remaining venues are left to “carry the burden” with “no access to relief”.
“This is not targeted support, it is policy that actively accelerates decline. What has happened to the Government’s SME strategy? What has happened to the industrial strategy that repeatedly recognised the importance of creative pipelines and cultural infrastructure? Today, those commitments are nowhere to be seen.”
“This patchwork approach to business rates is chaotic policy administration at best and sends no signal of confidence to businesses, workers or investors. It suggests a Government that neither understands nor values one of the UK’s most successful cultural and economic sectors.”
Krill concluded by saying that without further policy change, there will be “further closures, lost talent and long-term damage to Britain’s global cultural standing”.
NME has contacted the UK government for comment.
In response to the government’s U-turn on the business rates policy as it relates to pubs and live music venues, the Music Venue Trust said they “warmly welcomed” the decision, but did specify that spaces for recording music also must be protected.
“Grassroots music venues and other crucial parts of the music ecosystem such as recording studios and rehearsal spaces require a specific valuation process that recognises their cultural and community value and we hope thus review can deliver that,” said Mark Davyd, CEO of the Music Venue Trust.
UK Music Chief Executive Tom Kiehl also stressed that “while the extra support for pubs and music venues is welcome, we must not forget recording studios that are facing crippling rate increases that will leave many facing closure”.
He continued: “Why should the studio used to film Hamnet be entitled to business rate relief, yet the studio used to record the soundtrack not be eligible? This is pure discrimination and recording studios must not be treated as poor cousins in the creative economy. The Government must think again and extend a lifeline to support our world-leading studios that play such a vital part in our communities, talent development and support thousands of jobs.”
The changes outlined by Rachel Reeves came shortly after the Music Venue Trust revealed that over half of UK grassroots venues made no profit in 2025, and that 6,000 jobs were lost in the sector.
Sharing the concerning figures from the past 12 months, MVT not only demanded action from the government about the business rates, but also reiterated the importance of larger venues in the UK implementing a ticket levy to help ensure the survival of grassroots spaces.
The widespread loss of venues has been a growing concern across the UK in recent years, and at the end of 2024 was described by the MVT as causing “the complete collapse of touring”.
Green Party leader Zack Polanski recently sat down with NME to discuss the ongoing struggle for venues to remain open in the UK, and explain how it is having a huge negative impact on new talent being able to rise through the ranks.
“If we want great working class stories […] then we need to make sure we’re supporting the creativity of those people to be able to hone their skills,” Polanski continued. “The lack of funding and support means that the gap is getting wider and wider. It’s not working on every level. If we want a system that works, then it does require funding, it requires subsidies, and it particularly requires time and attention.”
The post With a third of UK nightclubs lost forever, the industry hits back at government’s “chaotic” decision to leave them out of business rates reduction and support appeared first on NME.
