The Night Time Industries Association has warned that the price of a night out has reached its limit, as new research shows average spending on food and drink is up 34% since 2020. Chief executive Michael Kill says nightlife businesses can no longer pass rising operating costs on to customers, and wants Wednesday’s Autumn Budget to deal with those costs at source.
CGA by NIQ found that typical reported spending per head in pubs, bars and restaurants has risen from £20.95 in 2020 to £28.06 in 2026, an increase of £7.11, or 33.9%. The NTIA says that rise should not be read as a healthier or more profitable sector. Operators have faced higher bills for employment, energy, tax, business rates and supplies, and many have put prices up simply to stay open.
That room to keep raising prices now looks tight. Spending grew by just 2.1% between 2025 and 2026. In London it has flatlined, moving from £30.09 to £30.08. Scotland recorded the highest average, at £30.37, ahead of England on £27.90 and Wales on £27.34.
The latest figures, from research running from December 2020 to August 2026:
- Average spend per head up 33.9%, from £20.95 in 2020 to £28.06 in 2026
- Growth between 2025 and 2026 slowed to 2.1%
- London spending unchanged in practice, at £30.08
- Scotland £30.37, England £27.90, Wales £27.34
Kill called this week’s Budget a defining moment for British nightlife. “For years, nightlife businesses have faced relentless increases in the cost of operating, from energy and employment to taxation, business rates and supply chains. Many have had no choice but to pass some of those costs on to consumers simply to keep their doors open. But the reality is that consumers have now hit an affordability ceiling.”
He said people are paying significantly more for a night out than they were a few years ago, and that the slowdown “should send a very clear message to the Chancellor. The consumer cannot be the industry’s financial shock absorber indefinitely.” Businesses cannot absorb further costs, he said, and customers cannot keep paying more. “This is a fundamental economic challenge for the night-time economy. When operating costs increase, prices inevitably come under pressure. But when consumers reach their spending limit, that mechanism breaks down.”
The association wants action on business rates, employment costs and the wider tax burden, arguing that measures which push up the cost of running a venue eventually show up in the price of a night out. Where those costs cannot be recovered, margins, investment, staffing and long term viability all come under pressure. Kill said nightlife “is not a luxury reserved for those who can afford ever-increasing costs. It is an essential part of our social infrastructure, cultural identity and local economies.” His closing line was blunt: “Consumers have reached their ceiling. Operators have reached theirs. The Budget must recognise that the sector has nowhere left to pass the pressure.”
The warning follows an earlier NTIA member survey, after the 2024 Autumn Budget, which found 90% of venues were taking a severe financial hit, with 40% warning they could be forced to close within six months. That survey, of 523 members, also found more than 90% were raising prices, cutting staff hours or reducing opening hours to cope. The association represents pubs, bars, nightclubs, live music venues, festivals and late-night cultural spaces. More on its work is at ntia.co.uk.
Higher spend is not the same as a busier or more profitable sector. The CGA figures do not show whether venues are getting more customers, selling more, or making more money. They are nominal, so they have not been adjusted for inflation, and a rise since 2020 may largely reflect higher prices rather than people buying more. About 5,000 consumers were surveyed each quarter, and respondents were asked how much they typically spent per head on food and drink combined on an average visit. That is self-reported spending, not till data. Geography is based on where people live, not where they went out. The research covers pubs, bars and restaurants, not late-night venues alone, and the December 2020 baseline sits in the middle of Covid restrictions. It also does not measure profitability, footfall, price sensitivity, or how much people are willing to pay.
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