Home Business News Financial ‘Armageddon’ to hit the night time economy

Financial ‘Armageddon’ to hit the night time economy

by LLB Finance Reporter
21st Aug 20 12:29 pm

Survey results released today show that 58% of businesses within the night-time economy fear they will not survive longer than two months without further Government support. This would put an estimated 754,000 peoples jobs at risk. This comes a 71% of businesses surveyed are already set to make more than half of their workforce redundant in a matter of weeks.

The Night-Time Industries Association (NTIA) surveyed its members which operate nightclubs, pubs, bars, live music venues to assess the impact of the coronavirus pandemic after the government enforced lockdown on the 23 March. One third of responders reported that they have been able to re-purpose at a typical cost of around £10-30k and with a dramatic negative impact on profitability.

The Night-Time Economy is one of the few remaining sectors without any clear roadmap from government, on when, and how it can reopen.

Commenting on the survey, Michael Kill, Chief Executive of NTIA said, “These results feel like the final catastrophic blow to the Night-Time economy. These businesses cannot fight for their survival for much longer. The Night-Time Economy employs 1.3m people in the UK and contributes £66bn to the UK economy per annum. Near enough every single business is on a dangerous cliff edge. This is the darkest of days for the Night-Time Economy.

“Without immediate additional help and clear indication of when we can re-open we are facing financial Armageddon.

“This will result in the loss of one of the main cornerstones of Britain’s diverse arts and cultural tapestry. I implore the Government to act on this data. Give us a clear roadmap on when businesses can reopen and reassurance that the financial support will be there to keep businesses financially afloat in the coming months.”

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