**Will the Dragonfly Lounge Survive? A Plea to the Chancellor Amid Rising Business Rates**

Nine months after its grand opening, the Dragonfly Lounge in Colchester stands at a critical juncture. This inclusive LGBTQ+ bar and community space, co-owned by Jo Palmer-Tweed (also known as Mamma Dragonfly), has transformed the local nightlife scene by offering drag cabaret, live music, and a welcoming atmosphere for everyone, regardless of their background or identity.

For Jo, the mission is clear: to create a safe haven for all community members. However, the future of her establishment now significantly depends on the decisions made by Chancellor Rachel Reeves in the upcoming Budget. Since the previous Budget introduced a 40% reduction in business rates for hospitality venues, financial strain has become evident. Jo recalls how changes made without public consultation have unexpectedly increased her monthly costs by £2,000. With a focus on offering a safe space, the impact of rising costs has put the Dragonfly Lounge in a precarious position, struggling to just break even amidst fluctuations in foot traffic and increasing operational costs.

The article delves into the complexities of business rates—taxes levied on commercial properties based on rental value—and how the recent adjustment from a 75% reduction to a lesser 40% relief significantly affects small businesses like Jo’s. Additionally, repercussions from the National Insurance rises have created a ripple effect, leading to increased supplier costs that ultimately trickle down to the customers. Therefore, lower consumer spending power has made the bar particularly vulnerable in a competitive, non-essential market, as noted by Jo, who emphasizes the dramatic drop in footfall over the summer months.

As the community gears up for another night filled with cabaret and excitement, uncertainty looms. With the Chancellor’s announcement imminent, Jo expresses her fears and hopes for the establishment’s resilience, stating, “Hand on heart, I don’t know. I hope so.” The article concludes with a reiteration of the government’s initiatives aimed at supporting nightlife and hospitality while spotlighting the dire situation of the Dragonfly Lounge, raising questions about its ability to endure economically in the current landscape.