According to the data, collated by CGA NielsonIQ and released by the NTIA, a total of 8,501 night-time economy firms disappeared between 2020 and 2023, with 43 businesses vanishing per week and 2,243 lost in the 12 months to September this year alone.
The total number of outlets in the night-time economy decreased from 70,826 in September 2022 to 68,583 in September 2023, a 3% decline.
NTIA CEO Michael Kill said: "These figures are not just numbers; they represent the livelihoods, dreams, and cultural heritage of our communities.
“The night-time economy, which includes a thriving ecosystem of independent businesses, has been disproportionately affected by the pandemic and cost inflation.”
In addition, a total of 6,127 independent businesses were lost between Sept 2020- Sept 2023, with a 5% decline in the last year.
Moreover, the figures showed as of September 2023 there were 35,469 independent businesses operating within the night-time economy while in 2020 there were 41,596 firms.
“The decline in independent businesses is a stark indicator of the immense challenges faced by those who contribute to the vibrancy and soul of our nighttime culture”, Kill continued.
To “secure the survival of these vital businesses” within the late-night sector, the CEO urged the Government to extend the current business rates relief and reduce VAT to 12.5% for hospitality firms in the upcoming Autumn Statement.
Earlier this month, trade bodies and operators from the across also called for the Government to support the industry with a VAT reduction in next month’s statement.
He added: “The night-time economy is an essential part of our national identity, and it is at risk of fading into the shadows without immediate intervention.
“These measures are the financial lifelines independent businesses and the night-time economy desperately need to weather this [economic] storm."