One third of UK nightclubs closed by end of 2022, report shows

24 January, 2023

Nightlife

One third of UK nightclubs closed by the end of 2022, according to a new report.

The finding came from the Hospitality Market Monitor by AlixPartners & CGA Powered by Neilson, which was shared by the Night Time Industries Association (NTIA) yesterday (January 23).

The report “reinforced” fears from the trade organisation that over one third of nightclubs have been lost since before the Covid-19 pandemic.

It also underlined that independent businesses across the sector have been worst affected by cost inflation and the fallout of COVID.

“We have consistently hammered home our concerns to the Government that Independent businesses across the Night Time Economy & Hospitality Sectors are at the greatest risk under the current crisis,” NTIA CEO Michael Kill said in a statement.

He continued that it “shows a clear contraction” in the independent operating sector of minus 13.3 per cent, 10 per cent greater than managed businesses seeing a drop of minus 3.6 per cent towards the end of 2022.

He also noted 13,000 business lost over the course of the last three years, 4800 business in 2022, with over three quarters of these closures occurring in the second half of the year.

“Nightclubs being one of the greatest impacted by cost inflation, with a six per cent drop in the fourth quarter of this year, and now a third smaller than it was before the pandemic reflecting disproportionate support and challenging trading environment,” the statement continued.

“With one new opening, for every three closures in the last three years, solely down to pandemic, cost inflation and the current industrial action challenges.

“The acceptance by the Government that businesses will be lost through this crisis takes no account of the people reliant on this sector.”

Kill continued that: “The sector is suffering heavily, and needs the financial headroom to recover.

“The rhetoric of long term growth and investment strategy is not addressing the immediate issues faced by the businesses.”

The NTIA CEO also said that government “must consider additional financial support” for the sector, by “readdressing the energy relief scheme and reducing VAT for 12 months as part of the announcement in the March Budget”.

This time last year it was reported that the UK could soon be left with just 5,000 nightclubs, according to a study.

In September 2022, The Music Venue Trust (MVT) and NTIA “welcomed” the Energy Bill Relief Scheme, but said further action was needed.

Elsewhere, Liverpool’s Meraki nightclub was saved as development plan fell through.

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