All-Party Parliamentary Group for the Night-Time Economy – Report On Impact Of Covid-19 On UK Nightlife

The All Party Parliamentary Group (APPG) for the Night Time Economy, a cross-party group of more than 40 MPs, has today published the findings of its recent inquiry into the impact of Covid which warns that the sector is at risk of ‘extinction’ unless the  Government takes urgent action. The MPs urge the Prime Minister and Chancellor to bring forward a sector-specific grant package and a detailed roadmap for reopening the sector to avoid ‘irreversible losses’ that would create ‘ghost towns’ across country and hinder the wider economic recovery.

The report, entitled ‘Covid-19 and UK Nightlife’, looked at the impact of the pandemic and Government support for businesses in the night time economy, including night clubs, bars, pubs, live music venues, festivals, and supply chain businesses. It involved a survey which received over 20,000 responses from consumers, employers, employees, and freelancers in the sector.Key findings of the survey included:

1.  85 per cent of people working in the night time economy are considering leaving the industry
2. 78 per cent of all employees in the sector had at some point been on furlough
3. Businesses in the night time economy had on average made 37 per cent of their total workforce redundant
4. In the second half of 2020, businesses in the night time economy traded at an average of 28 per cent of their annualised pre-Covid turnover
5. Only 36% self-employed nightlife workers have been able to claim the Self Employment Income Support Scheme (SEISS).In addition, the report includes numerous detailed personal testimonies of those in the sector describing how the pandemic has affected them.

Outside of periods of forced closure, night time economy businesses have seen numerous and changing restrictions on their ability to trade, including curfews, social distancing measures like the ‘rule of six’, the loss of vertical drinking, and requirements for a ‘substantial meal’ with alcohol. Businesses have faced significant costs and investments in adapting to new conditions, and many, including a majority of nightclubs, have been unable to trade at all.

The inquiry examined written submissions from hundreds of businesses and local authorities, including the Greater London Authority and Greater Manchester Combined Authority, key trade bodies UK Hospitality and UK Music as well as the Department for Business Energy and Industrial Strategy (BEIS) and the Department for Digital, Culture, Media, and Sport (DCMS).

The joint DCMS-BEIS submission recognised the importance of nightlife to the economy as a whole, noting that after the 2008 financial crisis the sector “helped drive the UK’s recovery more generally.” Despite this, the inquiry found that economic support for the night time economy had been “insufficient”, containing significant gaps.

Jeff Smith MP, Chair of the APPG and a former self-employed DJ, warned that the prospect of many night time economy businesses going bust would leave town and city centres across the country looking like ‘ghost towns’, noting the important role these spaces play in local economies and communities.
He commented:

“Our world-leading night clubs, pubs, bars, and live music venues are cornerstones of our communities. They drive so much economic activity both locally and nationally, and bring hope, joy and entertainment to millions across the UK. Our findings today reveal this industry is on its knees, in desperate need of additional support from the Government and a concrete plan for reopening. Without these interventions, many of these viable businesses will go under, leaving city and town centres resembling ghost towns. If the Government is serious about its ‘levelling up’ agenda it must act now to save this sector and avoid untold damage to the social fabric of this country.”

Some of the key recommendations for Government included in the report were:

1. Extending the furlough scheme until businesses can operate without restrictions, and extending VAT and business rates relief through 2021
2. Producing a roadmap for reopening late night venues based on the vaccination programme and mass testing
3. Expanding eligibility for Government Grant Schemes and proving a sector-specific support package
4. Providing a Government-backed insurance schemes and solutions to spiralling commercial rent arrears
5. Introducing a Treasury-backed scheme to boost demand once restrictions are eased
6. Appointing a UK Government Night Time Economy advisor

Michael Kill, CEO of the Night Time Industries Association, commented:

“But resilience only gets you so far without the required support. We need more assistance and a detailed plan for reopening now. Otherwise, much of what defines a night out in the UK will be lost forever.”