One in five nightclubs in Great Britain have closed over the past three years after the sector was badly hit during the Covid-19 pandemic and other economic pressures.
Figures shared by the Night Time Industries Association (NTIA) – a trade body representing businesses in the night-time economy – revealed there are only 1,130 nightclubs left in England, Wales and Scotland. This is a 20% drop since the first lockdown in March 2020.
There were 1,446 nightclubs in Britain in December 2019 and 1,924 in December 2014, according to figures collected by the data and research consultancy firm CGA.
The “culmination of pandemic debt, growing energy bills, workforce challenges, supply chain issues, insurance premiums and landlord pressures” have contributed to slowing ticket sales and visitor frequency at these venues, the NTIA said.
The trade body also warned that the true impact of cost inflation on businesses was yet to be seen, with more than 53.8% of respondents still to renew energy contracts.
Some parts of Britain were worse hit than others, such as the Midlands, where nearly 30% of nightclubs have closed since March 2020.
When broken down, the region that experienced the biggest percentage drop (28%) in the number of nightclubs since December 2019 was central England and central Wales, followed by the south-east outside London (27%) and the south-west (27%). There was a 25% drop in the number of nightclubs in Yorkshire and a 24% fall in the north-west, while Scotland had a drop of 21%.
The NTIA chief executive, Michael Kill, said it was time the government recognised the economic, cultural and community value of nightclubs.
“Late-night economy businesses were one of the quickest sectors to rebound during the financial crash many years ago, harbouring an abundance of resilience and entrepreneurial spirit,” he said. “It’s without a doubt that these businesses, particularly nightclubs, have a huge part to play in the regeneration of high streets in towns and cities across the UK.
“Beyond the generation of footfall through trade, domestic and international visitors to clubs support the local economy in secondary and tertiary purchases through accommodation, travel and retail.”
Kill said these businesses played a key part in people’s decision-making process, “from choosing a university or college to influencing investment choices for businesses relocating or expanding, to accommodate for a young workforce, not forgetting the important part they play in people’s physical, mental and social wellbeing.
“The government needs to recognise the economic, cultural, and community value of clubs and the wider night-time economy,” he added.
Lisa Nandy, Labour’s shadow levelling up secretary, said that reopening once-loved nightclubs in struggling towns and city centres could help to revive high streets and boost the economy.
“Every single town has a lost nightclub they feel very strongly about, that was part of our history and our heritage,” she said.
A Treasury spokesperson said: “We’ve stood behind the hospitality sector throughout the pandemic with a £400bn package of economy-wide support that saved millions of jobs and offered a lifeline to hundreds of night-time businesses up and down the country.
“We also went long with that support through a recovery loan scheme for nightclubs to grow and recover from unprecedented disruption. And at the spring statement we went further, announcing a 1,000 increase to the employment allowance, which will cut taxes for hundreds of thousands of businesses.”
