Night time economy businesses send over 6,000 letters calling for emergency support package

Night time economy businesses have sent over 6,000 letters to MPs demanding a government-backed emergency support package to combat surging costs.

As a result of soaring energy prices and 40-year high inflation, survival rates in night time economy and hospitality businesses are only at 70%, figures from the NTIA revealed.

It also reported that in over 65% of cases, businesses are barely breaking even or operating at a loss.

Night time industries have also been particularly vulnerable to "unsustainable" rises in leisure insurance premiums, which have doubled in value for venues like the George Tavern in London's Shadwell.

Recovery from the pandemic has been stunted by the cost of living crisis, which has led to "untenable operating costs" and low consumer confidence.

Michael Kill, chief executive of the Night Time Industries Association (NTIA), said: "Over the last three weeks we have seen an escalating public presence of closure notices from pubs, bars, restaurants, venues and clubs across the UK, with over 70% of businesses stating they will be financially compromised within weeks, all of which have stated untenable operating costs as reasons too close."

"The industry's future is finely balanced between the delivery of an effective survival package from the new Prime Minister and Government next week and continued consumer spend and confidence!"

"Over 6,000 businesses have written directly to there constituent MP's demanding that they make representation to the new Prime Minister and Chancellor as they take over office, on a survival package which will allow them financial headroom to get through this crisis, urging them to reduce VAT, extend business rates relief and implement an energy cap for small, medium enterprise businesses."

The next prime minister, Liz Truss, has been urged to act quickly to prevent ‘thousands' of hospitality closures.