2021 year of ‘extinction’ for UK nightclub industry

The UK nightclub sector faces ‘extinction’ this year without urgent government support, the Night Time Industries Association (NTIA) has warned.

Nightclubs across the UK have been closed since March 2020 due to the pandemic. The NTIA said that late-night venues have been given limited, and in some cases hugely disproportionate, support from the UK government, beside the furlough scheme.

Michael Kill, CEO of NTIA, said: “We are on the cusp of losing a cultural institution, the government has ignored the sector and failed to recognise its economic and cultural value. Nightclubs have made a huge contribution to our culture sector and are renowned globally.”

According to NTIA’s survey of more than 100 nightclubs, 81% of late-night venues said they would not survive past the end of this month (February) without government support.

In addition, 86% of nightclub businesses have made redundancies, with more than 65% of firms dismissing more than 60% of their workforces last year.

The survey also found that 88% UK nightclubs have more than two months of rent arrears, with 50% of respondents having more than three months of unpaid rent.

Furthermore, nearly half (43%) of venue owners had not received any grant support from the government. Many businesses have also been unable to access cash from financial firms, Kill said.

The NITA said the average rateable value for nightclubs and late-night venues is £105,986 (US$145,000).

Kill noted several factors that will cause the permanent closure of nightclub businesses, including a lack of appropriate financial support for the sector from the government. As such, Kill is calling for a “robust financial package” from the government.

‘Eradicated from society’ 

In addition, Kill noted that proposed changes to planning laws allowing landlords to renovate venues into houses pose a ‘huge threat’ to the sector.

Kill added: “Throughout this pandemic and the restrictive measures levied against the sector, it is clear that these businesses are being systematically eradicated from society. As they continue to be excluded from the narrative of press announcements and planning, and through misconceptions and misguided understanding of the sector, from age-old stereotyping the sector has been given little or no opportunity to re-engage even with very clear ability to open spaces safely.”

Kill also highlighted the absence of a clear exit strategy for reopening the industry in line with the government’s roll out of its vaccination programme.

Kill added: “Consider this as an industry, we have faced extreme adversity during this pandemic battling against financial hardship, increased regulatory constraints, business critical planning changes, financial services turning their backs on us and the continued refusal for the leaders of this country to mention nightclubs or late-night venues within the narrative – this is not negligence, this an intention to cull the sector advertently.”