Nightlife businesses see running costs increase by 26 per cent

nme.com:

COVID trading levels.Many establishments still have high levels of outstanding debt due to closures and restrictions that were brought on by the pandemic.

It is feared that these venues will not survive without continued support from the Treasury.In total, 90 per cent of the businesses surveyed said they would require further support from the government, with the main requests being an extension of the reduced rate of VAT and businesses rates relief, as well as additional government grants.“These statistics show just how bleak things remain for our sector,” Michael Kill explained.  “I think there is a temptation to think that, because it feels as if the pandemic restrictions are now behind us, that nightlife will just snap back to its pre-pandemic strength and everything will be fine.“Sadly, this couldn’t be much further from the truth.

We are still running into severe economic headwinds, and April threatens to be a perfect storm for the sector. I would now even at this late stage urge the Chancellor to postpone all the tax increases – on national insurance, VAT and business rates – to give some perfectly viable nighttime economy businesses a fighting chance of survival.”Kill continued: “It is unfortunately the case that when you see enormous cost increases of the kind we have felt in our sector, for the vast majority of businesses there is little else they can do other than pass these on to consumers.“Sadly, what this will mean is people’s well-earned nights out being made considerably more expensive, just when they are themselves struggling with their own cost of living and trying to decide which monthly expenses they can do without.”Last month, it was reported that the UK could soon be left with just 5,000 nightclubs.