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Business

NTIA survey reveals impact of spiralling costs on night time economy

The Night Time Industries Association (NTIA) has revealed a flash poll taken over the last week that gives an indication of the current impact of rising costs on the night time economy and hospitality businesses in the UK. 

The Night Time Industries Association (NTIA) has revealed a flash poll taken over the last week that gives an indication of the current impact of rising costs on the night time economy and hospitality businesses in the UK.

A poll taken between September 16 and September 18 of over 300 night time economy businesses shows that three out of four firms are just about breaking even (47.7%), or are losing money (24.8%).

Some 23% of the businesses surveyed said they would not last more than a few months if costs continue to spiral, and 40.6% said that they would not last more than two or three months.

The cost-of-living crisis is also impacting customers’ attitude towards spending money, deepening the impact on the night time economy and hospitality businesses.

A further 80.6% of respondents said that they had seen a decrease in footfall and 82% had seen a fall in revenue over the last three months of trading.

Businesses were also asked by the NTIA what could be done by the UK Government to help.

Some 84.3% said that a VAT reduction would enable a recovery while 66.8% also said an energy price freeze or cap would help.

A further 59.4% of respondents said they would welcome a rates relief extension; 31.8% said a National Insurance reduction and 6% said other reasons such as grants, a reduction in corporation tax and a freeze on loan payments.

Michael Kill, chief executive of the NTIA, said: “As the number of failing businesses we engage with escalates on a day to day basis, with many business owners and operators emotionally and mentally drained from over three years of uncertainty, questions are quite rightly being asked of the Government and its plans for the sector.

“Time is quickly running out, with hundreds of businesses already unable to hold on, making irreversible decisions about their future, with thousands of jobs lost or at risk. We have now reached such a crisis point that only immediate and large-scale interventions can save huge parts of the sector, with substantial cuts to VAT, an extension of business rates relief and a meaningful energy price freeze for Small Medium Enterprise businesses which is affordable.”

Kill added: “On Friday we need a concise and detailed plan from the Government on how they will support businesses through this crisis, nothing less than this is acceptable.”