Soaring energy costs & rocketing inflation put thousands of jobs & venues at risk

In an open letter written by five organisations in the UK nightlife and hospitality sector – The Night Time Industries Association (NTIA) and Music Venue Trust (MVT) say that “rocketing energy prices” would see music venues, pubs, and nightclubs’ annual bills rise by at least 300%.

Sadly, it doesn’t seem to be getting any better under the current government, as inflation officially hit double figures in July for the first time in over four decades.

Figures from a member survey held by NTIA in June highlighted 48% of NTE businesses are ‘barely breaking even’, and a further 20.2% stating that they’re losing money.

44.7% of businesses are ‘unsure’ if they will survive the next 12 months, with 20.8% stating they are ‘not confident’.

54.8% say their businesses have ‘little scope’ to increase prices within their local market, with another 20.8% stating they have no scope whatsoever – as consumers have less disposable income due to domestic living cost increases.

There are clear concerns industry-wide about the current state of play, with many feeling like we are being left to fester – much as were were all throughout the pandemic.

Michael Kill, CEO for NTIA, says: “Inflation reaching double digits this morning at 10.1% in the last 12 months to July, up from 9.4% , puts further pressure on businesses, placing over a quarter of a million jobs at risk and one in five businesses on the brink of failure in the next six months.”

“We are seeing businesses handing the keys back to landlords every week, as operating costs become completely unsustainable.”

“Time is running out for the Government to intervene; at this moment, we need a decisive leader who will stop escalating energy prices and give further relief to struggling businesses by reducing VAT and extending Business Rates relief.”

Earlier this month, a study revealed that one in five nightclubs in the UK have closed since the beginning of the pandemic — leaving 20% fewer clubs in the country open in early 2020.

A number of clubs have closed or announced their imminent closure across London, including Printworks, Space 289, and warning of closure from Heaven and G-A-Y venues.

Despite the government offering grants and loans to keep many businesses alive during the pandemic, many venues have struggled with increasing rent, new developments, and less footfall due to the cost of living crisis.