NIGHT TIME ECONOMY CRISIS DEEPENS: 35 INDEPENDENT BUSINESSES VANISH WEEKLY – GOVERNMENT URGED TO EXTEND BUSINESS RATES RELIEF AND SLASH VAT TO 12.5% IN AUTUMN BUDGET
The UK’s night time economy crisis deepens, with recent figures from CGA NeilsonIQ released by the NTIA highlighting the rapid erosion of independent businesses, painting a grim picture of the challenges faced by businesses across the sector in the last 12 months.
The year-on-year statistics underscore the dire need for government intervention to save these vital establishments. Leading industry voices are now urgently calling for an extension of business rates relief and a reduction of VAT to 12.5% to provide financial lifelines for struggling businesses.
NTIA Night Time Economy Figures produced by CGA Powered by NeilsonIQ
- In September 2023, there are 35,469 independent businesses operating within the night time economy, a sharp decrease from the number of businesses in 2020 at 41,596 – with a staggering 5% decline in just the past year. (2022-2023)
- Independant night time economy businesses are vanishing at a rate of 35 businesses per week, with 1825 lost in the 12 months leading to September 2023.
- The decline in independent businesses within the night time economy started in 2020, with a 7% reduction compared to 2021. Since then, the decline has continued at an alarming pace, with an additional 3% decrease between 2021 – 22, and a further 5% in the last year leaving communities bereft of cherished businesses.
- A total of 6127 Independant businesses have been lost between Sept 2020- Sept 2023
- The total number of outlets in the Night Time Economy decreased from 70,826 in September 2022 to 68,583 in September 2023, a 3% decline.
- Night Time Economy businesses are vanishing at a rate of 43 businesses per week, with 2243 lost in the 12 months leading to September 2023.
- A total of 8501 Night Time Economy businesses have been lost between 2020-2023
Statement from Michael Kill, CEO of the Night Time Industries Association:
“These figures are not just numbers; they represent the livelihoods, dreams, and cultural heritage of our communities. The night time economy, which includes a thriving ecosystem of independent businesses, has been disproportionately affected by the pandemic and cost inflation. The decline in independent businesses is a stark indicator of the immense challenges faced by those who contribute to the vibrancy and soul of our nighttime culture.
“We urgently call upon the government to recognise the gravity of the situation. As we approach the autumn budget, we implore them to provide proportionate support that will safeguard the future of these independent businesses. The night time economy is an essential part of our national identity, and it is at risk of fading into the shadows without immediate intervention.”
“To secure the survival of these vital businesses, we urge the government to extend the current business rates relief and reduce the VAT to 12.5%. These measures are the financial lifelines that independent businesses and the night time economy desperately need to weather this storm.”
To reverse this alarming trend, it is imperative that the Government intervenes with support in the Autumn budget and we come together as communities to support and uplift our local, independent businesses within the night time economy.
The survival and success of these businesses are vital to the resilience and uniqueness of our high streets and neighbourhoods, and they require immediate attention and support.
Notes to Editors:
Nikki McNeill | Publicist for NTIA
Email: [email protected]
Mobile: 07957 434517
About the Night Time Industries Association (NTIA):
The Night Time Industries Association (NTIA) is a leading advocacy group dedicated to promoting and enhancing the nighttime economy. NTIA represents a wide range of nighttime businesses, from bars and clubs to cultural venues, and works to create a vibrant, safe, and inclusive nighttime environment.
Summary: Outlet Types:
- Free: These are outlets that are not tied to any management or ownership structure.
- Managed: These are outlets that are managed by a central authority or entity.
- Tenanted: These are outlets under a tenancy agreement where an individual or business leases the space.
Analysis
- The total number of outlets in the Night Time Economy decreased from 70,826 in September 2022 to 68,583 in September 2023, a 3% decrease.
- The number of Free outlets decreased from 37,294 in September 2022 to 35,469 in September 2023, a 5% decrease.
- Free outlets saw the most significant decrease in numbers, with a 5% decline from September 2022 to 2023. This suggests a decline in independently owned or non-affiliated outlets.
- The number of Managed outlets remained relatively stable, with a 0% change from September 2022 to September 2023.
- Managed outlets remained relatively constant, indicating stability in outlets that are centrally managed.
- The number of Tenanted outlets decreased from 16,663 in September 2022 to 16,297 in September 2023, a 1% decrease.
- Tenanted outlets also decreased, but not as much as Free outlets, with a 1% decline. This suggests that outlets under tenancy agreements may be more resilient or less affected by changes in the Night Time Economy .
- When comparing the last three years (2021-2023), there is a general trend of declining numbers in all outlet categories. This suggests a broader trend of contraction in the Night Time Economy.
