February is upon us already, the mood across hospitality is cautiously optimistic. The Chancellor’s latest announcement of “relief” for the sector signals small signs of LOVE in valentines Month however the long-awaited recognition of the pressures operators have faced for many is far too little too late — from rising costs many feel the uk government is simply out of touch with reality — and more need to be done NOW.
The message is clear: hospitality matters, and HOSPITALITY IS NOT JUST PUBS!
In this edition, we also dive into one of London’s most exciting nightlife stories with our feature on XOYO 2.0. Reinvented, reimagined and more ambitious than ever, XOYO’s evolution captures the spirit of modern on-trade culture — where experience, community and creativity are just as important as what’s in the glass. It’s a powerful example of how venues can innovate, stay relevant and continue to lead from the front.
From policy to people, venues to vision, this month’s issue is about resilience, renewal and the future of hospitality.
We hope you enjoy.
As always STAY POSITIVE STAY COLLABORATIVE STAY UNITED Justin Wingate
Director at TopGunMedia
Fiona Gauld Production - info@topgunmedia.co.uk
For press enquires or advertising opportunists please call or email: Email: info@topgunmedia.co.uk Telephone: 0141 556 4111
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XOYO 2.0 SHOREDITCH’S LEGENDARY DANCEFLOOR GETS A NEW LIFE
EMERGENCY MEASURES
ANNOUNCED IN ENGLAND
ONTRADE MAGAZINE AWARDS
VOTING NOW OPEN
BETWEEN RELIEF AND REALITY SCOTTISH HOSPITALITY FACES A CRITICAL BUDGET MOMENT
UK DMO BECOMES EXCHANGE FOR CHANGE
The UK Deposit Management Organisation (UK DMO), the not-for-profit body established by industry to design and deliver the Deposit Return Scheme (DRS) across England, Scotland and
Northern Ireland, has unveiled its trading name –Exchange for Change.
This announcement marks another important milestone in the delivery of the UK’s Deposit Return Scheme, which will go live in October 2027. Exchange for Change reflects the scheme’s core purpose: a simple exchange where people return their empty drinks containers to reclaim their deposit, and the wider impact that simple action has in reducing litter and keeping communities clean. It’s a straightforward transaction that leads to meaningful environmental change.
As part of this next phase of development, Exchange for Change has unveiled a new brand icon that will appear on all in-scope bottles, cans and return points associated with the Deposit Return Scheme. The icon has been designed to become the single, recognisable identifier of the scheme –making it easy for people to spot participating containers and return locations at a glance. This consistent visual marker will support correct participation at point of return and enable clear, unified messaging across packaging and infrastructure. The icon visually represents the deposit return process and works consistently across the full range of drinks containers covered by the scheme.
NTIA BLASTS TREASURY OVER 81% HIKE ON SURVIVING PUBS AND HIDDEN TAX RAID ON NIGHTLIFE!
The Great British Night-Out Under Siege: 40% of Pubs Face ‘Cliff-Edge’ Tax Hike as Nightclubs & Bars are ‘Hollowed Out’ by VOA Raid.
Exclusive analysis of new Valuation Office Agency (VOA) data reveals a brutal transformation of the UK’s social landscape. While local pubs are being hit by record-high valuations, the nightclub sector is being systematically dismantled, with the Treasury extracting the same tax revenue from a rapidly vanishing number of venues.
“Higher Tax On Fewer Doors”: NTIA Blasts Treasury Over 81% Hike On Surviving Pubs And Hidden Tax Raid On Nightlife!
The Night Time Industries Association (NTIA) has today issued an urgent ultimatum to Chancellor Rachel Reeves, warning that the 2026 business rates revaluation will be the “final curtain call” for thousands of venues.
Analysis of the 2026 VOA figures, exclusively provided by the Pubs Advisory Service, reveals a “higher tax on fewer doors” strategy that is strangling the life out of the nighttime economy. Despite a 15% drop in the number of pubs since 2017, the collective Rateable Value (RV) has surged to
a record £1.67 billion.
The Pub Crisis: A “40%” Cliff-Edge
For the UK’s remaining 39,661 pubs, the upcoming cycle represents a seismic shift in fixed costs. Over 15,600 venues are bracing for a valuation hike of more than 40%, while the safety net of Small Business Rates Relief is “evaporating.”
The Nightclub Collapse: Taxation Without Representation
The data for nightclubs and bars (VOA categories 199 and 303) is even more harrowing. In the Nightclub & Discotheque Business Rates category specifically, the sector has contracted by 32% since 2017. Yet, incredibly, the total tax base has actually increased since the pandemic.
-2017: 1,831 nightclubs with a total RV of £65.4m.
-2026: Just 1,241 nightclubs remaining, yet the total RV has ballooned to £69.4m.
“The Treasury is valuing nightclubs at over 56% more BUT from a third fewer sites,” says the NTIA. “There is no evidence of the ‘Covid reductions’ that were promised; instead, the average nightclub valuation has jumped from £35,725 to nearly £56,000.”
SCOTTISH GOVERNMENT URGED TO RAPIDLY GIVE HOSPITALITY SUPPORT
Following a support package announced in England, UKHospitality Scotland has called for the Scottish Government to make good on its promise to use new funds to support the sector.
Leon Thompson, Executive Director of UKHospitality Scotland, said: “Now we have seen the details of the business rates support package in England, I urge the Scottish Government to move swiftly to make good on its promise at the Scottish Budget to use these funds to support hospitality.
“Like in England, Scottish hospitality businesses are facing steep hikes to business rates. Hotels are facing average increases of £68,000 over three years. Pubs are set for an average £36,000 increase.
“This is a hospitality-wide problem that needs a hospitality-wide solution.
“The Scottish Government should rapidly outline its plans to bring forward a support package for the entire sector, to support business viability, jobs and the communities that rely on these businesses.
“I stand ready to work collaboratively with the Scottish Government on a package that best supports the hospitality sector.”
SCOTTISH HOSPITALITY BUSINESS SHARE PROFITS WITH THEIR TEAM
Independent Scottish hospitality group Manorview have announced they are sharing £135,766 of profit with team members across the business.
Manorview, who own and operate 11 venues, broke the news to the team on Monday evening at team meetings and events across the business.
Manorview’s ‘Heartcount’ scheme sees them annually share 10% of net profits with their team. Everyone who has been with the business for 1 year or more qualifies – and this week over 300 team members will receive a profit share payment alongside their pay.
individual amounts are calculated based on hours worked, NOT on job title or pay. This ultimately means that regardless of whether someone is a Director, Housekeeper, Manager, Spa Therapist, Finance Manager, Chef or Kitchen Porter, they get the same amount for the same hours.
The team got the news of another year of shared profits at team meetings and events across the business last night. The event theme was ‘A Slice for Everyone’ – recognising that everyone, regardless of role, can get a slice of Manorview profits. Team were treated to pizza and cake and take-home goody bags to mark the occasion.
Dani Fraser, Head of People at Manorview said “We are very proud of our Heartcount profit share scheme. Everyone, regardless of role, makes a positive contribution to Manorview and it’s only right that they then receive something in return. We are pleased that we’ve been sharing profits for 7 years now, and to date over £968,000 has been shared fairly with our committed and caring team.”
To ensure the profit share scheme is as fair as possible,
Heartcount profit share is the only monetary based bonus at Manorview, having moved away from performance or target related bonuses just for managers or sales team several years ago. Dani continued: “Fairness is the heart of so many of our decisions, and the fact is it’s not just senior or sales team who make things happen here, this is why we structure Heartcount in the way we do.”
XOYO 2.0: SHOREDITCH’S LEGENDARY DANCEFLOOR GETS A NEW LIFE
When London’s night owls murmur about the city’s nocturnal heartbeat, XOYO has long been part of that whisper — an underground icon in Shoreditch where sound system brushes up against memory, where DJs and dancers alike make their mark on the night. But in early 2026, the whispers have become something louder: a full-blown reinvigoration.
“Back to the Underground” isn’t just a slogan spraypainted onto shuttered doors — it’s a rallying cry. After years of operating under different management, the storied venue has been acquired by Propaganda Independent Venues, a British collective launched by
nightlife veterans Dan Ickowitz-Seidler and Richard Buck. Their mission? To return XOYO to its grassroots spirit, refocus on the music and the community that gave it life, and invest in both infrastructure and culture.
A REBIRTH BENEATH SHOREDITCH STREETS
Behind the wooden doors at 32–37 Cowper Street lies a space familiar yet entirely refreshed. The refurbishment, months in the making and now nearing completion, touches nearly every element of the club’s physical presence: rebuilt walls and stages, state-of-the-art lighting rigs, redesigned floors, and a powerful sound system crafted for clarity and depth — the very heart of a space where music matters.
Kirk Allen — who has toured the live-music world from The Warehouse in Leeds to France’s Rise Festival — took to social media to articulate why the overhaul was necessary: “XOYO used to be an icon; it used to be an institution. But over the past few years it’s been left to rot.”
This candour — rare in a world of corporate press releases — resonates with a generation of Londoners who’ve watched countless independent spaces vanish
under economic pressures. It’s also reflected in the new ownership’s commitment to community: local artists will be invited to apply for stage time alongside major acts; a portion of ticket sales will offer optional donations to the Music Venue Trust, the charity that champions grassroots venues across the UK.
HERITAGE AND EVOLUTION
XOYO’s reputation wasn’t built overnight. Since opening in 2010 in an old printworks near Old Street station, the club has become a proving ground for dance music heavyweights — both established and emerging. Its quarterly residency series cemented the venue’s status, hosting some of the world’s most respected DJs and taste-making names in house, techno, drum & bass and more.
Yet recent years haven’t been easy. Independent venues across London have been squeezed by rising operating costs, regulatory hurdles and a post-pandemic landscape that saw many shutter for good. It’s a story familiar
to anyone who’s watched the capital’s nightlife shrink while demand for memorable nights out has never been higher.
The new XOYO aims to be part of the solution — not a nostalgia act, but a hybrid: grounded in the underground ethos, yet built with modern night-time culture in mind. Talk of no-phone dancefloor nights — designed to keep revelers present and connected to the moment — reflects this fresh philosophy.
WHY IT MATTERS
To many, XOYO isn’t just another club — it’s shorthand for a certain London energy: a bit gritty, fiercely
musical, and stubbornly authentic. Its rebirth is about more than redecorated walls or a new roster of DJs; it’s about the city’s nightlife reclaiming its bones. In an age when venues that once anchored youth culture are disappearing, XOYO’s renaissance feels like a message in a bottle — that London’s pulse still thumps, that dancers, DJs, and dreamers still have somewhere to anchor their nights.
So when the doors open and the first waves of bass roll across the Shoreditch floor again, it won’t just be another weekend — it’ll be a new beginning. And for a generation that’s longed for evenings rooted in music over marketing, it may just be the moment they’ve been waiting for.
“ XOYO’s reputation wasn’t built overnight. Since opening in 2010 in an old printworks near Old Street station, the club has become a proving ground for dance music heavyweights — both established and emerging. Its quarterly residency series cemented the venue’s status, hosting some of the world’s most respected DJs and tastemaking names in house, techno, drum & bass and more. “
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EMERGENCY MEASURES ANNOUNCED IN ENGLAND
Emergency pubs relief will provide respite, but promised strategy must deliver hospitality-wide support. Pubs will feel some respite, but urgency is needed to deliver on Government’s intention to tackle sector’s rising cost of doing business.
Kate Nicholls, Chair of UKHospitality, said: “We welcome the recognition by the Prime Minister and the Chancellor of the scale of the challenges facing the hospitality sector. They have listened to us about the acute cost challenges facing businesses, all of which is impacting business viability, jobs and consumer prices.
“The rising cost of doing business and business rates increases is a hospitality-wide problem that needs a hospitality-wide solution. The Government’s immediate review of hospitality valuations going forward is clear recognition of this.
“The devil will be in the detail, but we need to see pace and urgency to deliver the reform desperately needed to reduce hospitality’s tax burden, drive demand, and protect jobs and growth. We will work with the Government over the next six months to hold their feet to the fire to deliver this.
“This emergency announcement to provide additional funding is helpful to address an acute challenge facing pubs.
“The reality remains that we still have restaurants and hotels facing severe challenges from successive Budgets. They need to see substantive solutions that genuinely reduce their costs.
“Without that clear action, they will face increasingly tough decisions on business viability, jobs and prices for consumers. Those are costs borne by us all, and I hope the Government delivers on its promise to support the whole hospitality sector.”
THE FIGURES IN BRIEF
Average business rates increase for a hotel in England:
2026/27: £125,300 rates payable - an increase of £28,900 (30%) on the current average of £96,400.
2027/28: £161,400 rates payable – an increase of £65,000 (67%) compared to today.
2028/29: £207,700 rates payable – an increase of £111,300 (115%) compared to the current average.
In total, the average increase to business rates totals £205,200.
Average business rates increase for a restaurant in England:
2026/27: £14,000 rates payable - an increase of £1,800 (15%) on the current average of £12,200.
2027/28: £18,100 rates payable – an increase of £5,900 (48%) compared to today.
2028/29: £18,800 rates payable – an increase of £6,600 (54%) compared to the current average.
In total, the average increase to business rates totals £14,300.
Total hospitality employment:
Six in seven jobs in hospitality are in businesses other than pubs - 3m jobs out of a total 3.5m in the sector. This includes 1.3m in restaurants, 982,000 in catering and 540,000 in accommodation.
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BUSINESS RATES AND THE PRESSURE ON HOSPITALITY: A LICENSING PERSPECTIVE
There are many issues facing the licensed trade but one which weighs heavily on hospitality operators is business rates. While energy costs, staffing and supply chains continue to dominate headlines, rates remain a quieter – yet often more damaging – burden on pubs, bars, restaurants and late-night venues across the UK.
From a legal and licensing standpoint, the impact of the current rates environment is increasingly visible. We hear from operators, comments and concerns are all over social media and LinkedIn. It impacts operators - not just on their balance sheets - but in how venues operate, invest and, in some cases, survive. This is turn affects menu planning, range of products and how much operators have to charge just to keep the doors open. As we saw in January with hospitality closures, the impact is real and has consequences
RATES AS A FIXED COST IN A FLEXIBLE INDUSTRY
Hospitality is an industry built on flexibility — seasonal trade, fluctuating footfall and evolving consumer habits. The industry has pivoted, changed, reinvented and survived many things from the smoking ban to Covid. In contrast, business rates, are rigid. For many licensed premises, particularly those in city centres and established nightlife zones, rates are one of the largest fixed overheads. But rates bear little relation to actual turnover and the valuations applied, as we are seeing in terms of the recent revaluation.
This mismatch creates a fundamental problem. Operators can adapt staffing models or menus, but rates remain constant regardless of trade performance, leaving little room for manoeuvre when margins tighten. Rates are also out with operators control to a large extent with the current revaluations and it is now operators need to try to challenge unrealistic valuations
THE LEGAL LANDSCAPE: APPEALS EXIST, BUT ACCESS IS UNEVEN
There is a common misconception that business rates are simply “set and forgotten”. In reality, occupiers do have legal routes to challenge rateable values through the Check, Challenge and Appeal process. However, in practice, this system is complex, time-consuming and often costly. Smaller independent operators frequently lack the resources to engage rating specialists or pursue lengthy appeals, while larger operators are better positioned to do so. This creates an uneven playing field within the sector, where those most exposed to rates pressure are often least able to contest it. Even when appeals succeed, retrospective relief is limited. For many venues, the damage has already been done by the time a reduction is agreed.
LICENSING COMPLIANCE UNDER FINANCIAL STRAIN
From a licensing perspective, sustained financial pressure has knock-on effects that are increasingly difficult to ignore. Licensing conditions frequently require ongoing investment. Premises need renovation and maintenance. Styles change and premises need upgraded. In a time where premises want to be ‘Instagramable’ so the premises, and not just the food and cocktails, are photogenic, there’s a cost to that. There’s also costs the public, and rates Assessors, don’t think about - maintenance of CCTV systems, annual
WHAT WE DO:
ADVICE ON PERSONAL AND PREMISES LICENCES
DRAFTING AND LODGING APPLICATIONS
ATTENDANCE AT CONTENTIOUS HEARINGS
ADVICE ON BUSINESS STRUCTURES FOR LICENSED PREMISES
TRAINING AND MANAGEMENT OF STAFF PERSONAL LICENCES
certification for electrical and fire equipment, statutory staff training in licensing, kitchen procedures and food hygiene. Sound insulation works and safety improvements. When rates consume a disproportionate share of turnover, operators can be forced to abandon, delay or scale back these commitments, increasing the risk of non-compliance and creating a downward spiral
Many operators are also reducing operating hours, as staying open at certain times is costing the operators rather than bringing in revenue. Other changes may require an. Aviation of the premises licence such as amending the activities (adding live entertainment and similar) or amending conditions to manage costs. While these applications are legitimate, they can be contentious at local level and place additional strain on already stretched licensing authorities, and costs on already stretched operator budgets
SHORT-TERM REALITY: TOUGH DECISIONS
In the short term, many venues are operating in a state of constant reassessment. Decisions around opening hours, staffing levels and event programming are being shaped not by demand, but by fixed cost exposure.
In some cases, operators are choosing to surrender licences or transfer premises because the business model no longer stacks up under the current rates burden. These are not failing businesses in the traditional sense — they are casualties of structural cost imbalance.
LONG-TERM IMPLICATIONS FOR THE ONTRADE
• Looking ahead, the consequences for the sector could be profound:
• Loss of independents: persistent rates pressure risks and the lack of operator budget to involve professionals to assist in challenging unrealistic rates increases can accelerate the decline of independent venues, reducing diversity and character within the on-trade.
• Market consolidation: larger groups, are better able to absorb or challenge rates liabilities, so may continue to dominate key trading locations and absorb other venues
previously operated by independents. We have seen this across other sectors, such as solicitors and vets, so it is not a new concept but one which has been ignored by Government and Assessors.
• High street decline: hospitality is a cornerstone of the evening economy. Venue closures impact footfall, employment and the wider perception of town and city centres. It also impacts other hospitality such as hotels, holiday and short term lets.
Licensing system strain: increased licence variations, transfers and closures add a burden to local licensing frameworks and community relations, increasing pressure on already overworked and busy council departments and employees.
THE CASE FOR SMARTER REFORM
This is not an argument against business rates in principle, but a call for reform that reflects the realities of modern hospitality. More responsive valuation methods, targeted relief for smaller and irregular operators (some late night venues only open three or four days a week for limited hours and venues in very rural areas may close seasonally), and a more accessible, clearer appeals system could go a long way towards restoring balance. Closer collaboration between operators, licensing advisers and local authorities could help ensure that compliance remains achievable rather than punitive during periods of financial stress. Operators should feel able to pick up the phone to advisers without fearing a large fee in return. A free premises licence review is one of take services The Licensing Company offers.
CONCLUSION
Hospitality has shown remarkable resilience in recent years, but resilience has its limits. When fixed costs like business rates begin to dictate operational and licensing decisions, the risk is not individual venue failure but long-term damage to the sector as a whole.
If we want a sustainable, diverse and vibrant on-trade, business rates policy must evolve to support it — not quietly undermine it.
For more details contact Joanna Millar, The Licensing Company on info@thelicensing.company or 07747 653417.
BETWEEN RELIEF AND REALITY: SCOTTISH HOSPITALITY FACES A CRITICAL BUDGET MOMENT
For many Scots, a trip to a favourite pub, a weekend in a coastal B&B, or a night out at a city restaurant feels like a defining part of community life. Behind that experience, the hospitality sector fuels jobs, local economies and Scotland’s reputation as a destination for visitors from around the world. Yet in the wake of the 2026-27 Scottish Budget, many operators say they are caught between cautious support from Holyrood and the stark reality of soaring costs on the ground.
A BUDGET WITH BALANCED PRIORITIES — BUT MODEST IMPACT ON BUSINESS
On 13 January 2026, Finance Secretary Shona Robison unveiled the SNP government’s latest fiscal blueprint, a £68 billion package emphasising health, social care, tackling child poverty and cost-of-living reliefs for households.
For businesses, especially hospitality, the headline support came through targeted non-domestic rates relief — the property tax paid by firms on premises such as pubs, cafes and hotels. The Budget continues long-established schemes like the Small Business Bonus Scheme, which removes the burden of business rates for many small premises, and adds a 15 % non-domestic rates relief for retail, hospitality and leisure properties — worth around £138 million over three years and capped at £110,000 per business annually.
The Scottish government also cut the basic, intermediate and higher property rate multipliers and introduced transitional relief worth £184 million over three years to
cushion the impact of a revaluation of rateable values.
INDUSTRY REACTION: “NEEDED MORE, NOT LESS”
Despite these measures, hospitality businesses and trade bodies responded with disappointment and concern. Operators said the relief announced fell short of offsetting significant increases in rateable values, which in many cases are rising by more than 100 % — a figure that critics say bears little relation to actual trading conditions.
UKHospitality Scotland, which represents pubs, bars, hotels and restaurants, described the Budget’s support as insufficient, warning that many firms will still face higher rates bills come April. Leaders called the measures “a sticking plaster” that fails to address the underlying problem of an outdated and punitive business rates system.
Trade bodies had spent the weeks leading up to the Budget urging ministers to deliver meaningful business rates reform to prevent closures and jobs losses — a message echoed across cities and rural towns alike.
COMPETITIVE DISADVANTAGE AND BORDER PRESSURES
One of the sector’s biggest gripes is the growing gap between the support available in Scotland and that south of the border. In England, permanent business rates discounts for retail, hospitality and leisure have been introduced in recent Budgets — making Scottish firms feel increasingly disadvantaged.
Hospitality organisations have quantified the impact: over a three-year period, comparable pubs in Scotland could pay tens of thousands of pounds more in rates than those in England — a cumulative burden that squeezes margins further.
BEYOND BUSINESS RATES: LABOUR AND COST PRESSURES
The budget comes at a time when operators are already stretched:
• Labour shortages persist, with thousands of vacancies across the sector and limited cash reserves in many businesses — a situation that threatens service levels and growth.
• Energy costs and inflation continue to bite into tight budgets.
• Other taxes and costs — such as national insurance and energy bills — remain outside the control of Holyrood, adding to financial strain.
This means that even with rates relief, many hospitality firms are left grappling with costs that outpace their ability to raise prices without deterring customers.
WHAT IT ALL MEANS FOR SCOTLAND’S HOSPITALITY LANDSCAPE
Scotland’s hospitality sector is both economically significant and socially vital. It employs tens of thousands of people and injects billions into local economies, particularly through tourism.
Yet the current budgetary support, while welcome, stops short of transformative relief. For many pubs, restaurants and small hotels, the difference between survival and closure could hinge on future rate reforms, wider tax policy, and whether politicians act on calls for a fairer, more competitive business environment. In the eyes of operators on the ground, relief that merely mitigates a tax hike isn’t enough — what’s needed is a strategy that recognises the unique challenges of hospitality and restores confidence in an industry still rebuilding from pandemic disruptions and economic headwinds.
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