Thousands of night-time firms call for support

05-Sep-2022 - Last updated on 05-Sep-2022 at 10:06 GMT

Letters written: businesses have called for support amid rocketing energy costs (image: Getty/Dougal Waters)

Related tags Legislation Finance Night time economy

More than 6,000 letters have been sent to MPs from night-time economy and hospitality businesses, demanding emergency support as the sector battles the energy crisis.

According to the Night-Time Industries Association (NTIA), businesses are at the centre of a perfect storm where profit is being decimated by soaring operating costs.

Furthermore, the trade body said in more than 65% of cases, these firms are barely breaking even or losing money.

Disposable income reduction

Firms are unable to pass these costs onto consumers due to many having less disposable income, as a result of rising energy costs for households too, which the NTIA predicted could create a tipping point where consumers reduce spend or frequency of visits to hospitality due to unaffordable price hikes, resulting in market contraction.

The trade body and other voices from across the sector have been lobbying the Government to substantiate the severity of the crisis, illustrating the need for an emergency relief package for businesses.

Closure notices

NTIA boss Michael Kill said: “Over the past three weeks, we have seen an escalating public presence of closure notices from pubs, bars, restaurants, venues and clubs across the UK, with more than 70% of businesses stating they will be financially compromised within weeks, all of which, have stated untenable operating costs as reasons to close.

“The industry’s future is finely balanced between the delivery of an effective survival package from the new Prime Minister and Government next week and continued consumer spend and confidence.

“More than 6,000 business have written directly to their constituent MPs, demanding they make representation to the new Prime Minister and Chancellor as they take over office, on a survival package, which will allow them financial headroom to get through the crisis, urging them to reduce VAT, extend business rates relief and implement an energy cap for small, medium enterprise businesses.”