Firms will rely on Spring Statement to survive, says NTIA

22-Mar-2022 - Last updated on 22-Mar-2022 at 10:16 GMT

Spring Statement: Thousands of businesses at mercy of Chancellor's decisions (Getty/ sharply_done)

Related tags NTIA Spring Finance Government spending Chancellor

Hundreds of thousands of businesses are at the mercy of Wednesday’s Spring Statement (23 March), according to the Night-Time Industries Association (NTIA).

Businesses across the night-time economy have seen cost inflation soar across the last few months, with many relying heavily on the statement to alleviate some of the financial pressures.

The recent statement by the Chancellor suggests he is resolute in being unable to solve all of the current issues faced by the market at present, as a culmination of both post pandemic impact and sanctions due to the war in Ukraine having a direct impact in the UK.

NTIA chief executive Michael Kill said: “We must now rely on the Chancellor once again, in his mini budget, to sure up the financial support and relief to allow headroom for businesses to survive, in light of the current debt levels and cost inflation, specifically around VAT, energy and fuel.”

Catastrophic impact

Businesses within the night time economy who are already struggling from increased costs, losses and debt incurred during the pandemic, face rocketing energy and insurance bills, with even small premises seeing prices double or treble compared to previous contract rates, costing them up to an extra £60,000 per year.

Unless support is given, there is likely to be a catastrophic impact on the economy, with many pubs, bars, nightclubs and other venues forced to close due to escalating costs, putting thousands of people out of work.

As more and more businesses fall out of their energy contract, renew insurance, as well as taking on increasing operating costs each month, up to 50% of businesses across the night time economy could reach a tipping point in the next 12 months.

Wasted money, crippled industry

Kill said: “Billions of pounds in public funding will be wasted, if the Chancellor lifts taxes within the budget, crippling an industry that has worked hard to survive, only to be let down at the last hurdle.

“The rhetoric from Government of ‘leave no one behind’ is becoming a distant memory for businesses that committed to supporting the Government's public health strategy, but have been left once again awaiting their fate.”