Nearly a third of nightclubs in the UK have shuttered since March 2020, led by losses in Wales and Yorkshire.
Data from trade body the Night Time Industries Association (NTIA) revealed a decline of 32.7% in the number of UK nightclubs since March 2020, when the pandemic started and the nation went into lockdown.
The double-digit drop is equal to a loss of 405 venues, with the figure plummeting from 1,240 nightclubs in March 2020 to just 835 in November 2024. There were 196 managed venues as of November last year, alongside 616 independently-run clubs and 23 tenanted sites.
However, 2024 showed a slight bounceback with the total number of UK nightclubs falling by 1.4% over the last 12 months, the NTIA noted.
The decline since the beginning of Covid-19 was driven by independent venues and areas such as Wales (down by 40.2% between March 2020 and November 2024) and Yorkshire, which plunged by 40.6% over the same period.
The NTIA said the ‘golden quarter’ – which includes Halloween, Christmas and New Year – provided a temporary boost to the industry.
The number of independent businesses slipped by 36.1% with 348 nightclubs lost since March 2020, and a 1.6% decrease in 2024. In comparison, managed nightclubs fell significantly less, down 14.6% between March 2020 and November 2024, but rose by 1.6% last year.
Cities such as Birmingham and Liverpool have suffered nightclub losses of 38.5% and 31.3%, respectively.
However, areas like London and North East England have shown small increases in 2024, up by 5.8% and 4.1% respectively. Manchester saw an increase of 4.3% in 2024 while Newcastle upon Tyne rose by 11.1%.
Scotland experienced a 30.4% decrease since March 2020, and a 4.1% drop in 2024.
The NTIA previously calculated that if nightclubs continue to close at the current trajectory, none will be left by 31 December 2029.
The hospitality sector is set to face increased costs in April 2025 when National Insurance contributions (NICs) from employers rise to 15%, following the autumn budget announcement.The trade body noted that the industry is grappling with rising costs, including energy prices, wages, NICs, and duty hikes.
The NTIA warned that many night-time businesses face £30,000 (US$37,000) to £100,000 (US$123,000) in extra costs.
‘Deeply fragile’
Michael Kill, CEO of the NTIA, commented: “While we’ve seen some recovery during the golden quarter, the reality is that our sector is still deeply fragile. We’ve already lost hundreds of businesses across the night-time economy, who are struggling with unsustainable cost increases, including soaring energy prices and significant increases in wages, NICs, and duties.
“The additional financial burden from the planned tax increases in April 2025 could drive many more businesses to the brink of closure. Operators are working on fine margins, and many have exhausted all possible avenues to cut costs. The uncertainty heading into 2025 is more concerning than anything we saw during the pandemic.”
Kill urged the UK chancellor to provide additional support to prevent closures and protect jobs.
The NTIA is calling for immediate tax relief in the 2025 spring budget, which is scheduled for 26 March.
“The government must prioritise a balanced, proportionate approach that addresses the severe cost challenges businesses in the night-time economy are facing,” Kill continued.
“A VAT cut and other targeted support measures are essential to ensure the survival and recovery of this crucial sector. Without timely action, the night-time economy faces a real risk of further decline, with significant long-term consequences for businesses, employees, and local communities.”
The UK capital’s nightlife is in disarray with clubs and bars shutting down, and consumers going home early. In the September 2024 issue of The Spirits Business, we looked at what can be done to reinvigorate the city when night falls.
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