UK late-night economy falls by 28% since 2020
The late-night economy sector in the UK has contracted by 4.6% in 12 months, according to a report by CGA by NIQ and the Night Time Industries Association (NTIA).
The data was revealed as part of the Night Time Economy Market Monitor, which was created by the two organisations.
The dip takes the UK’s late-night bars, clubs, casinos and similar venues to 28% below the level of March 2020, when Covid-19 shuttered the sector and kicked off years of financial pressure.
The Monitor included data from the CGA RSM Hospitality Business Tracker, which found that spending in late-night venues is also falling. September’s figures show year-on-year growth of 2.5% for drink-led pubs, but a drop of 6.8% for bars, which usually operate later into the night.
Across all hospitality channels, the period between 5pm and 7pm has overtaken 7pm to 10pm as the biggest earning trading period of the average day.
More positively, licensed venues in the evening economy – as opposed to late-night premises – grew by 0.9% in the 12 months to September. This sector is just 7.4% behind March 2020.
The report found that around a quarter (24%) of ‘high-tempo’ night-goers consider security when planning visits, while 28% weigh up transport options.
The decline in late-night venues has been particularly felt in the independent sector. The number of these businesses has fallen by 30.6% since the start of the pandemic, compared with a fall of 14.5% for larger hospitality groups.
Reuben Pullan, CGA by NIQ’s senior insight consultant, said: “These numbers are more proof of the huge pressures facing late-night businesses. While many have responded well to seismic changes and challenges, others – especially smaller operators – have found it impossible to recover from Covid and its aftershocks.
“Consumers remain eager to go out, and demand for hospitality experiences is changing rather than collapsing.
“Christmas and New Year trading will bring a much-needed boost, but we’re likely to see more closures into 2026 unless the late-night economy gets the support from central and local government that it deserves.”
The NTIA is calling on the government to support the sector in next week’s (26 November) Budget. It is specifically calling for a reduction of VAT for hospitality, a reversal of National Insurance contribution thresholds, and business rates reform.
Mike Kill, CEO of the NTIA, said: “For too long, government policies have suppressed a vital part of Britain’s cultural and social life. The late-night economy is an engine for jobs, tourism and community vibrancy, but it is being systematically squeezed. Rising costs, safety fears and unreliable late-night transport are creating barriers to spending and closing doors.
“The Budget is a chance to reverse this trend and recognise the late-night sector as the cultural and economic powerhouse it truly is.”
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