London tube strikes could cost on-trade £150m
The ongoing tube strike in London this week could cost the hospitality and tourism sector up to £150 million (US$204m), trade bodies have calculated.
Industrial action started on Sunday over pay and working conditions. Members of the Rail, Maritime and Transport union (RMT) have raised concerns about shift work and the impact on members’ health, and as a result they are asking for a 32-hour work week.
The London Underground isn’t expected to fully reopen until Friday morning.
Industry body the Night Time Industries Association (NTIA) lamented this week’s strikes and the impact it will have on night-time venues.
Michael Kill, CEO of the NTIA, said: “Since 2022, rail and tube strikes have cost the UK’s night-time economy billions in lost revenue, with forecasts indicating a further £150m could be lost during this week’s strike period alone. This devastating projection comes at a point when the sector is relying heavily on consistent week-to-week trade to stay afloat.
“Consumer confidence in transport is already at an all-time low, with many people no longer assured that they can travel safely and reliably at night. Recent research by Obsurvant highlights that for 18-30-year-olds in particular, the guarantee of getting home safely is a fundamental condition for staying out later. Without that confidence, people choose to stay closer to home, cut nights short, or not go out at all.
“The impact is clear: major events have been disrupted, footfall across towns and cities has fallen, and pubs, clubs, restaurants, hotels and theatres are seeing significant declines in trade. At a time when rising costs are already squeezing operators, ongoing transport disruption is compounding the pressure further.
“As the government reshuffle takes shape, we hope to see fresh momentum in driving meaningful support for our sector. Without reliable transport services and targeted backing, we risk stifling growth, losing audiences, and undermining the vibrancy of our nightlife.”
UKHospitality also warns of impact on industry
Trade association UKHospitality also emphasised the economic impact this week’s strike action will have on the sector.
Kate Nicholls, chair of UKHospitality, said: “This week’s tube strike will have a major impact on London’s hospitality and tourism businesses, costing the sector up to £110m.
“Consumers will be forced to change or cancel their plans, impacting sales, and many hospitality teams will have difficulty making it to work.
“This level of impact comes at a time when businesses can least afford it, having just been hit with £3.4 billion [US$4.6bn] in additional annual cost.
“It’s crucial that all parties involved get round the table to negotiate a solution that avoids damaging strikes.”
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