A new report has found that one in five nightclubs in the UK has shut in the last three years.
Recent figures shared by the Night Time Industries Association (NTIA) through CGA suggest that a “perfect storm” of issues has led to a 20% drop in the number of clubs, leaving just 1,130 venues left in the UK. According to the data, the Midlands and the North have been hit the hardest, with some key independent businesses being lost, all of which play a significant role in supporting the wider The Night Time economy.
The NTIA said in a statement that “the culmination of pandemic debt, growing energy bills, workforce challenges, supply chain, increased insurance premiums, landlord pressures and product cost increases have created a perfect storm” and that operating cost pressures combined with consumers being less likely to spend their disposable income during the cost of living crisis are considered in light of the early stages of a recession.
Michael Kill, CEO of the NTIA, said: “Late night economy businesses were one of the quickest sectors to rebound during the financial crash many years ago, harbouring an abundance of resilience and entrepreneurial spirit. It’s without a doubt that these businesses, particularly nightclubs, have a huge part to play in the regeneration of high streets in towns and cities across the UK. Beyond the generation of footfall through trade, domestic and international visitors to clubs support the local economy in secondary and tertiary purchases through accommodation, travel and retail.”
He went on to say that “it is also key to recognise that these businesses play a key part in people’s decision-making process from choosing a university or college, to influencing investment choices for businesses relocating or expanding to accommodate for a young workforce. Not forgetting the important part they play in people’s physical, mental and social well-being. The government needs to recognise the economic, cultural and community value of clubs and the wider night time economy. We must protect these businesses, using every means possible, and recognise their importance before it’s too late.”