One in three nightclubs in the UK could shut by the end of this year due to rising inflation, according to the Night Time Industries Association (NTIA).
The NTIA revealed new figures, clarified by CGA, that show the recent cost-of-living crisis could accelerate the closure of nightclubs from one in five during the pandemic to one in three by the end of 2022.
Figures from CGA noted there were 1,068 nightclubs as of September 2022, down from 1,191 in December 2021 and 1,446 in December 2019.
More than 255 nightclubs were lost between December 2019 and December 2021, closing at a rate of 10.63 per month, equating to a nightclub being lost every three days during the pandemic, the NTIA noted.
In addition, the NTIA said that between December 2021 and September 2022 there was a further loss of 123 nightclubs, closing at a rate of 14 per month, equivalent to a nightclub being closed every two days.
If nightclubs were to close in line with the current trajectory for the remainder of 2022, the NTIA believes this would result in one in three venues lost by the end of 2022.
Michael Kill, CEO of NTIA, said the government is “ripping the heart out of nightlife”.
“This inflationary circle is taking its toll on our sector, with businesses trading 15% down across the board, costs up over 30% taking the shine off the golden quarter,” he continued.
“Independent nightclubs across the UK are fighting to survive, managing cashflow on a day-by-day basis, waiting on a budget which has failed them twice before.
“With the prominence of dance music in the UK as recently highlighted by the BPI [British Phonographic Industry], it is a huge tragedy for UK culture seeing nightclubs in decline. These spaces nurture up-and-coming talent and are also cultural and social hubs of communities which are now at risk of being lost forever.”
Kill called on chancellor Jeremy Hunt to provide further support for the industry as it plays an “important role” in the country’s economic recovery.
He previously asked the chancellor to extend business rates relief, reform the business rates system and lower the current rate of VAT in the next budget announcement, which is currently set for 17 November.
We investigated how nightclubs in party destinations are performing now travel has resumed.
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Author: Nicola Carruthers