Cultural nightlife economy experiences slowdown of growth

Although the UK’s cultural nightlife economy has shown a growth rate of 3.2 per cent, the value across all sectors has slowed down since 2023.

The figures come from the Night Time Industries Association’s (NTIA) first edition of the quarterly Night Time Economy Market Monitor.

A total of four sectors were included in the report: out of home culture and leisure economy, day time economy, night time economy, and night time cultural economy.

Across all of these, there was a total market increase of 2.3 per cent equating to £489,740 ($609,460/€587,220) which falls short of the 4.1 per cent year-on-year growth from 2023.

“The findings of this report clearly illustrate the immense challenges our sector continues to face,” said NTIA chief executive Michael Kill.

“While the night-time economy remains a £153.91bn powerhouse, we cannot ignore the fact that growth is slowing and operating costs are rising at unsustainable levels. Many businesses, especially small medium enterprises and the cultural sectors, are struggling to maintain profitability despite consumer demand.

“Adding to these concerns is the uncertainty presented by the impending tax increase cliff edge, the rise in National Insurance contributions for employers, the increase in the National Living Wage, and the reduction in business rates relief. With no sign of a U-turn on these critical policy changes, the financial burden on businesses is set to increase further, threatening jobs and “livelihoods across the sector.”

Employment figures also offer an insight into how Britons spend their free time.

In 2023, increases were seen in jobs in the out of home culture and leisure economy, night time economy, and night time cultural economy as they all still recover from the COVID-19 pandemic.

Jobs in sporting venues, clubs, and gyms significantly increased from 409,900 in 2022 to 452,800 in 2023.

Experience-led venues have also seen improvements, with one-third of people saying they are visiting these sites more than they were a year ago.

In terms of traditional night time economy spending, the report shows that venues are seeing a near three-quarter decrease in guest footfall, the number of drinks bought, and the average spend per visit.

“The value of the night time economy cannot be overstated, not just for the financial throughput it generates, but also the cultural richness that it brings to consumers’ lives,” said Reuben Pullan, senior insight consultant at Curren Goodden Associates, which also worked on the report.

“However, the industry is under threat. The COVID crisis and relentless pressure on costs have created enormous challenges for hospitality businesses in the last five years, and late-night clubs and bars have been hit hardest of all. However, many other segments have been remarkably resilient, and the growth in new types of venues like competitive socialising bars shows the evening economy isn’t disappearing—it’s just changing. With the right support from the government, night-time businesses can power not just hospitality but Britain’s economic growth and job creation.”