Nearly 400 nightclubs shut since March 2020

A trade body is calling on the UK government to cut VAT to 12.5% as new data showed nearly a third of nightclubs have closed since the start of the pandemic.

The Night Time Industries Association (NTIA) revealed 396 nightclubs across the UK have shut between March 2020 and December 2023, representing 31% of total businesses in the sector.

The figures represent a closure rate of nearly 10 per month – or two a week. As of December 2023, there are 851 nightclubs in the UK.

The NTIA also highlighted a disparity between the types of businesses affected with tenanted nightclubs experiencing a 14% loss (32 sites) between December 2020 and December 2023, and managed nightclubs losing eight venues over the same period.

The trade association said the closures go beyond economic loss and signalled a ‘cultural crisis endangering the vibrancy and diversity of nightlife’.

The NTIA believes that the ‘systematic’ closure of nightclubs is not merely due to the pandemic, but ‘reflects years of neglect, burdensome regulations, and insufficient governmental support’.

As such, the NTIA reiterated the government must offer financial relief to the struggling sector, with a reduction in VAT to 12.5% being ‘imperative’.

The hospitality, hotel and leisure sectors currently pay 20% VAT, which was lowered temporarily during the pandemic.

Michael Kill, the trade body’s CEO, said businesses have been affected by the “unprecedented cost-of-operating crisis”.

He believes many establishments “could have weathered the storm” if they had received sufficient support. He also called the narrative that changing habits led to the closures “absurd”.

“The truth lies in the economic impact, driven by poor policy decisions, overbearing regulatory controls and inadequate infrastructure,” he continued.

“The marginalisation of nightlife businesses has left them feeling neglected, questioning the government’s motive, with limited avenues for survival.

“As we navigate recovery, it’s imperative that policymakers acknowledge the vital role of these establishments and provide the support they urgently need.”

He said future support must be “targeted, transparent and substantial” and asked the government to “act decisively to prevent irreversible losses” in the night-time economy.

The UK’s largest nightlife operator, Rekom, called in administrators last month.