Have you noticed your typical night out emptying your wallet faster than expected? You’re not imagining it, going out has never been more costly. Let’s unpack why.

Sky‑High Alcohol Duty & VAT

Steep taxes are a major culprit. In the UK, alcohol duty is among the highest in Europe. As Sacha Lord, the Night‑Time Economy Adviser for Greater Manchester, bluntly put it:

“We pay 20 times more alcohol duty on a pint in the UK than in Germany. Nothing to celebrate here.”

On top of that, VAT is back at 20% after the post-pandemic reduction. Compare this with countries like Spain or Germany, where lower VAT and duty mean nights out cost far less.

Crushing Business Rates & Energy Bills

Business rates and soaring energy costs add even more strain. A recent NTIA report warned that high taxation and overheads are driving independent venues to the brink. Many have no choice but to pass these costs on to customers.

Licensing Crackdowns & Fees

Licensing requirements and compliance costs are also escalating. Post-pandemic crackdowns, like those connected to the rollout of Martyn’s Law, mean venues face even tighter restrictions and higher fees. Smaller venues and promoters are feeling the squeeze hardest.

Comparison with Europe

Take Spain as an example: VAT is around 10%, alcohol duties are lower, and energy costs and licensing are far less punishing. In the UK, the government relies heavily on hospitality taxes while offering little in the way of relief.

Viewed as “Luxury, Not Lifeline”

Unlike healthcare or public transport, hospitality and nightlife are often seen as luxuries. But they are vital to mental health and social cohesion. The NTIA’s Last Night Out campaign warns that if trends continue, UK club culture could collapse entirely by 2029.

The Mental‑Health Toll

During lockdowns, we learned how deeply we rely on shared spaces. Nights out help combat loneliness and foster community. Yet rising costs make them inaccessible for many, turning a simple night at the pub into an occasional indulgence.

What Needs to Change?

• Rebalance VAT and duty: Spain and Ireland show how supportive tax policies can keep nightlife vibrant.
• Cut business rates & energy bills: Venues need lasting relief, not one-off gestures.
• Recognise the value of nightlife: Clubs and bars aren’t frivolous—they’re cultural and social lifelines.

The Real Cost of Doing Nothing

The NTIA warns that December 31, 2029, could mark the end of clubbing culture as we know it. That’s not just about losing nights out. It’s about losing creative spaces, community hubs, and places where young people belong.

It’s time we stopped treating nightlife like a luxury and started valuing it as the social glue it really is.