Recent research has indicated that almost 50% of night time business in the UK are experiencing operational difficulties due to cost inflation and the lingering consequences of the devastating pandemic. Confronted by this difficult situation, many business-owners have claimed that they are not confident about surviving the next 12 months.
The Night Time Industries Association (NTIA) has published a report which states that 53.2 per cent of the 200 businesses they surveyed have cited a 30% rise in operating costs when compared to the costs before the pandemic. Many venues and nightclubs called for government support because of the detrimental economic impact of the lockdowns but the aid was described as “woefully inadequate”.
Talking about the findings and the implications of the report, NTIA chief Michael Kill said: “These figures are extremely hard to ignore, the situation is worsening day by day, with operating costs becoming untenable. We are starting to see the impact on customers through slowing tickets sales, bookings and frequency of visit.”
The report also mentions how 48% of businesses are only breaking even while 20% are losing money every day. In addition to these concerning discoveries, energy bills have significantly risen but the number of customers have declined. According to experts, this is because the cost of living in the UK is also on the rise.
Explaining the urgency of the situation and the imminent collapse, Michael Kill added: “Our industry is still extremely fragile, many will struggle to survive another crisis. Time is running out, the Chancellor must act now, and answer the calls from the industry to reduce VAT back down to 12.5% and an energy cap for SME businesses.”