UK nightclubs more concerned now than during the pandemic
The UK’s nightclub sector has been hit with an alarming decline in activity as it continues to battle “unsustainable” cost pressures following the Autumn Budget’s tax hikes.
Fresh figures from the Night Time Industries Association (NTIA) have today revealed there has been a 32.7 per cent decline in activity since 2020 amid what is seen as a “deeply fragile” state of recovery.
The latter months of 2024 saw a slight uptick in hope for London and the North East, but a majority of regions and cities across the nation struggled.
London, which saw the smallest decline, witnessed a 19.7 per cent decrease from March 2020 to November 2024.
Manchester saw a decrease of 33.3 per cent, while Birmingham topped the charts with a drop of 38.5 per cent.
Some UK regions, such as central, faced declines upwards of 39.6 per cent.
Michael Kill, chief executive of the NTIA, said the policies implemented in this year’s worrying Autumn Budget have only increased fears within a sector that needs more support.
NTIA’s research also revealed a majority of those in the sector have begun to face 30 to 40 per cent higher operational costs compared to pre-pandemic levels.
“While we’ve seen some recovery during the golden quarter, the reality is that our sector is still deeply fragile,” Kill said.
He added: “We’ve already lost hundreds of businesses across the night time economy, who are struggling with unsustainable cost increases, including soaring energy prices and significant increases in wages, NICs, and duties.”
Nightclubs call for support
The NTIA has warned these financial burdens could cause a number of businesses to consider closing, with many already “working on fine margins” and having “exhausted all possible avenues to cut costs”.
As a result, the group has urged the Government to implement tax relief and VAT cuts during this year’s Spring Budget.
Kill added: “The uncertainty heading into 2025 is more concerning than anything we saw during the pandemic.
“The Chancellor must step up with considered support to help businesses survive and protect jobs.
“The long term strategy rhetoric is important, but there must be a recognition and consideration for the immediate challenges, which are substantial, as we risk further closures and job losses. This environment for many is unsustainable.”
