Over the past four days The Night Time Industries Association (NTIA) has generated a flash poll which gives a clear indication of the current impact cost inflation has had on night time economy and hospitality businesses across the UK.
Businesses remain resilient but cannot hide the frustration and anger, as they face uncertainty once again, leaving many businesses, employees and freelancers on a financial cliff edge.
It seems all too clear that the Government understates the current crisis faced by businesses within the NTE & Hospitality sectors, many of which are facing a perfect storm between untenable cost increases and consumer market constraints, where consumers have less disposable income.
NTIA flash poll between 16 and 18 September over 300 night time economy businesses found:
- Three out of four Businesses surveyed are barely breaking even (47.7%) or losing money (24.8%)
- 23% Businesses surveyed would not last more than a few months (40.6% of Businesses surveyed would not last more than 2-3 months) under the current operating cost levels.
- 80.6% of Businesses surveyed had seen footfall decrease & 82% had seen revenue decrease in the last 3 months of trading.
- Businesses were asked what would have the greatest impact on there business survival – 84.3% VAT Reduction / 66.8% Energy Freeze / Cap / 59.4% Business Rates Relief Extension / 31.8% National Insurance Reduction / 6% Other – Including Grants / Corporation Tax Reduction / Freeze on Loan Payments
Michael Kill CEO NTIA said, “As the number of failing businesses we engage with escalates on a day to day basis, with many business owners and operators emotionally and mentally drained from over 3 years of uncertainty, questions are quite rightly being asked of the Government and its plans for the sector.”
“Time is quickly running out, with hundreds of businesses already unable to hold on, making irreversible decisions about their future, with thousands of jobs lost or at risk.”
“We have now reached such a crisis point that only immediate and large-scale interventions can save huge parts of the sector, with substantial cuts to VAT, an extension of business rates relief and a meaningful energy price freeze for Small Medium Enterprise businesses which is affordable.”
“On Friday we need a concise and detailed plan from the Government on how they will support businesses through this crisis, nothing less than this is acceptable.”