NTIA poll reveals ‘fragility’ of night time economy

08-Jan-2024 - Last updated on 08-Jan-2024 at 09:48 GMT

Economic uncertainty: The NTIA has called for government help to support the late night sector (Credit: Getty/Predrag Vuckovic)

One trade body has called for government intervention to support the night time economy after its research shed light on the instability of the sector.

The Night Time Industries Association (NTIA) has released the results of a flash poll involving more than 453 NTIA member businesses.

The poll evaluated trading levels and impacts over the festive period, revealing insights that underscore the urgent need for targeted government support with the upcoming Spring Budget.

Businesses reported both footfall increases and decreases, highlighting the unpredictable nature of consumer behaviour due to the cost-of-living crisis.

NTIA chief executive Michael Kill said he wanted to highlight the critical concerns the night time industries are currently facing.

Unstable climate

He added: “The Night Time Economy is grappling with the widespread impact of external factors, unpredictable consumer behaviour, ongoing financial challenges, and the limited sustainability of businesses without support.

“It is imperative that we address these issues with targeted government interventions. The findings underscore the fragility of the Night Time Economy, emphasising the urgent need for coordinated efforts to ensure its survival and facilitate a robust recovery."

This inconsistency makes it difficult for operators to adapt and plan to changing market dynamics, which the NTIA said raises concerns about the night time economy’s overall stability.

A large percentage of businesses faced revenue challenges between October and December, with 21.8% experiencing a 0% to 10% decrease and 18.8% seeing an 11% to 20% drop.

A helping hand

The 13% experiencing a decrease of more than 30% in revenue is “alarming”, said the NTIA, as it shows a need for urgent measures to stabilise businesses facing financial setbacks.

While more than half (55.7%) of businesses estimate they can last up to four months without further support, around a quarter (25.7%) projected sustainability of two to three months.

Furthermore, the majority of businesses are advocating for specific government interventions. These include VAT reduction (82.9%), restructuring of business rates or further relief (57.1%), and added energy support (32.9%).

Some 70% of surveyed businesses also reported adverse impacts from industrial action.