‘Cataclysmic Christmas’ as third of nightlife businesses fear closure within a month

A new survey by the Night Time Industries Association (NTIA) reveals the sector faces a ‘cataclysmic Christmas’ with claims that one fifth of nightlife businesses could lose their entire workforce, and one third fear closure within a month without urgent government support

The survey of more than five hundred nightclubs, bars, pubs and hospitality venues, follows new COVID restrictions with the Government’s ‘Plan B’ measures, and Omicron uncertainty.

Sacha Lord, Greater Manchester night time economy advisor, is a member of the NTIA which conducted the survey over the weekend of the December 18-19.

It found that:

• On average, night time economy venues have lost £46,000 per unit in lost sales and cancellations during the festive period.
• More than half of businesses required to introduce COVID Certification for entry to their premises report witnessing in excess of a 40% drop in footfall.
• Half of all businesses in the night time economy will have to cut more than half of jobs in their workforce if the Government does not provide commensurate financial support.

NTIA, alongside other trade bodies and industry leaders, are demanding action from the Chancellor to step in and acknowledge the scale of the challenges facing businesses and operators as a result of the new Omicron variant, hindering both consumer confidence, wrecking supply chains and bringing costly new restrictions to venues across the UK.

Michael Kill, NTIA chief executive, said: “It really is a chilling prospect to see so many venues in our sector left to bleed, with a lockdown in everything but name and absolutely no recognition of this from the Government.

“These venues have faced over 20 months of financial hardship and the Christmas trade period was integral to keeping those surviving businesses afloat in the upcoming year.

“If further restrictions are to be implemented, the Chancellor must step in and recognise the huge damage that waves of cancellations, driven by mixed government messaging, resource-intensive COVID protocols and costly restrictions actually have.”

He added: “The Government have had 20 months to learn how our sector operates – it is beggars belief we stand here again, as if back in March 2020, imploring the Government to listen to us, to understand how businesses work and to realise that inaction is a death sentence for our industry.

“It really is a Cataclysmic Christmas.”

Sacha Lord said: “Whilst shocking and upsetting, these latest stats don’t come as much surprise.

“The industry have been unanimously calling on the Chancellor for both support and leadership.

“To date, our calls have fallen on deaf ears and for some, it is already too late. If the UK’s fifth biggest industry has any hope of survival, he must come forward, urgently.”

Chancellor Rishi Sunak yesterday (December 21) announced a £1bn funding package to help the hospitality sector and SMEs, but many in the industry said it was inadequate.

The support package will enable businesses in the hospitality and leisure sectors in England to apply for one-off grants of up to £6,000 per premises, plus more than £100m discretionary funding will be made available for local authorities to support other businesses.

However, one publican pointed out that the £6,000 grants are linked to the rateable value of premises, diminishing pay-outs for many. Fiona Hornsby, proprietor of Liverpool pubs The Bridewell and The Denbigh Castle, said: “If we stay open it’s lovely, but if we get closed, it doesn’t touch the sides.”

She also criticised the Chancellor’s claim that the VAT reduction helps the industry, saying: “The VAT cut doesn’t apply to alcohol, only food, so it doesn’t benefit us as a wet-led pub.”

Bill Addy, chief executive of Liverpool BID Company, also said: “This bailout will barely cover overheads for many businesses and continues to show that the Government does not understand the nuts and bolts of running a business.

“With 50% of their income being made in this crucial Christmas period, and with takings down 60%, many will be questioning their survival in 2022. Livelihoods should not be part of politics. We will continue to lobby for support, locally, regionally and nationally to ensure those that have lost income do not continue to fall behind.”