Seven in ten night time industry businesses at risk of losing money, survey reports

Almost three quarters (70%) of night time industry businesses reported that they are at risk of losing money despite the government support package of tax cuts and energy relief, according to survey results from the Night Time Industries Association (NTIA).

The NTIA held a flash poll on energy and the mini budget among 287 businesses, which includes multi operators, bringing the actual total of respondents to just under 600.

More than half (55%) of survey respondents are seeing higher rates of electricity and 57% are experiencing higher rates of gas under the Government Energy Bill relief scheme.

One in two businesses stated that they would not last more than three months without further support from the government.

Last month, the Insolvency Service revealed that the number of company insolvencies has risen by 59% over the past year amid spiralling cost pressures, with 216 insolvencies of hospitality businesses occurring in July this year, up from 158 in June.

Michael Kill, chief executive of the NTIA, said: “With businesses still subject to large increases, up to 300% in energy compared to 2021, the subsequent drop in consumer spend has crippled many hospitality and night time economy businesses.

“The golden quarter is one of the key trading periods for the sector, where we build cash reserves to sustain the slower months of January and February. If we do not get a meaningful intervention, in the form of a VAT Cut and Business Rates Relief, to aid us through this period under current trading conditions, we will see a catastrophic failure of businesses as we move into 2023.”