According to the Night-Time Economy Report, the sector also lost £10bn in GDP and £3.1bn in GVA while the number of businesses and jobs fell from 425,000 and 38,000 in 2018 to 392,000 and 34,000 in 2021 respectively.
Figures from CGA AlixPartners also showed the heavy impact the pandemic had on independent firms, revealing a 13% contraction in independent businesses compared to a 3% contraction in managed businesses.
The NTIA added more than 65% of operators were unsure they would survive the next 12 months without further Government support.
Heart-breaking
NTIA CEO Michael Kill said: “It is heart-breaking to hear of so many businesses being lost, and the potential to lose so many more.
“These businesses are owned, operated and worked in by members of the community they serve.”
The report also showed the UK NTCE contributed 1.64%, or £36.9bn, to GDP in 2019, falling to £29.4bn in 2020 and to £24.1bn in 2021.
In addition, the GVA of the UK NTE stood at £46.4bn in 2018 while the GVA of the UK NTCE was £11.6bn. However, in 2021 GVA in the NTCE had fallen to £8.5bn, in the NTE to £34.5bn.
Fair and reasonable
In light of these figures, the NTIA called for a reduction to the rate of VAT to 10% for the hospitality, late night economy and events sector for the next 12 months, including alcohol, accommodation, food and tickets within the relief, as well as lower the business rates multiplier.
Additionally, the association urged the Government to restructure the Energy Relief Scheme to deliver “fair and reasonable” energy rates to businesses across the sector, with consideration given to independent and cultural firms.
Kill added: “The current Government has failed these businesses and the wider cultural sector. They do not value the UK night time culture economy in the same way their European counterparts do and are focused on taxation and regulatory control.
“The rest of Europe is working with the sectors to support through investment and growth and are seeing the benefits of this support ahead of the UK.”
