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Nightclubs closures since Covid Published Date: 02/08/2022

Recent figures released by NTIA through CGA have shown the huge impact on nightclubs across the UK over the last 3 years, with only 1130 nightclubs left across the UK, which is down substantially since the pandemic and subject to further change in the current economic climate.

The Midlands and North have been hardest hit, with some key independent businesses being lost, all of which play a significant role in supporting the wider The Night Time economy which generates £112 billion in revenue per annum (6% of the UK’s total).

The culmination of pandemic debt, growing energy bills, workforce challenges, supply chain, increased insurance premiums, landlord pressures and product cost increases have created a perfect storm. Operating cost pressures coupled with consumers with less disposable income have seen the early stages of a recession with slowing ticket sales and visitor frequency.

There is still some way to go to see the true impact of cost inflation on businesses, with over 53.8% of respondent businesses still to renew energy contracts.

Michael Kill CEO NTIA says:

“Late night economy businesses were one of the quickest sectors to rebound during the financial crash many years ago, harbouring an abundance of resilience and entrepreneurial spirit.”

“It’s without a doubt that these businesses, particularly nightclubs, have a huge part to play in the regeneration of high streets in towns and cities across the UK.”

“Beyond the generation of footfall through trade, domestic and international visitors to clubs support the local economy in secondary and tertiary purchases through accommodation, travel and retail.

“It is also key to recognise that these businesses play a key part in people’s decision making process from choosing a University or College to influencing investment choices for businesses relocating or expanding, to accommodate for a young workforce.”

“Not forgetting the important part they play in people’s, physical, mental and social well being.”

“The Government needs to recognise the economic, cultural, and community value of clubs and the wider night time economy. We must protect these businesses, using every means possible, and recognise their importance before it’s too late.”

Labour’s Shadow Leveling Up Secretary, Lisa Nandy said that reopening once loved nightclubs in struggling towns and city centres could help to revive the high streets and boost the economy.

“Every single town has a lost nightclub they feel very strongly about, that was part of our history and our heritage”  she said.