Night time economy at risk of ‘extinction’
The plea for support follows the publication of a report that examined the impact of the pandemic and Government support for businesses in the night time economy, including night clubs, bars, pubs, live music venues, festivals, and supply chain businesses.
The Covid-19 and UK Nightlife report received over 20,000 responses from consumers, employers, employees, and freelancers in the sector.
It also had input from trade bodies including UK Hospitality and UK Music, Greater London Authority and Greater Manchester Combined Authority as well as the Department for Business Energy and Industrial Strategy (BEIS) and the Department for Digital, Culture, Media, and Sport (DCMS)
It found that in the second half of 2020 businesses in the sector traded at an average of 28% of their annualised pre-Covid turnover and that businesses had made an average of 37% of their total workforce redundant since the pandemic began.
The report also highlighted the plight of self-employed nightlife workers, only 36% of which have been able to claim the Self Employment Income Support Scheme (SEISS).
Outside of periods of forced closure, night time economy businesses have seen numerous and changing restrictions on their ability to trade, including curfews, social distancing measures like the ‘rule of six’, the loss of vertical drinking, and requirements for a ‘substantial meal’ with alcohol.
Businesses have also faced significant costs and investments in adapting to new conditions, yet many, including a majority of nightclubs, have been unable to trade at all.
Jeff Smith MP, Chair of the APPG and a former self-employed DJ, warned that the prospect of many night time economy businesses going bust would leave town and city centres across the country looking like ‘ghost towns’, noting the important role these spaces play in local economies and communities.
“Our world-leading night clubs, pubs, bars, and live music venues are cornerstones of our communities. They drive so much economic activity both locally and nationally, and bring hope, joy and entertainment to millions across the UK. Our findings today reveal this industry is on its knees, in desperate need of additional support from the Government and a concrete plan for reopening."
Some of the key recommendations for Government include extending the furlough scheme until businesses can operate without restrictions; extending VAT and business rates relief through 2021; and providing a roadmap for reopening late night venues based on the vaccination programme and mass testing.
“We are pleased to support the APPG for the Night Time Economy when it became clear our industry’s needs weren’t being heard by policy makers," says Night Time Industries Association CEO Michael Kill. "But it gives me no pleasure today to announce the findings of this report, which confirm the devastating impact that the pandemic has had on UK nightlife."
“Every day I speak with the dedicated people that make up this industry. They have shown great resilience in the face of adversity. But resilience only gets you so far without the required support."
"We need more assistance and a detailed plan for reopening now. Otherwise, much of what defines a night out in the UK will be lost forever.”
It was recently reported that the night time economy was losing as many as 40 businesses per week.
