Average nightclub business in £230k worth of debt as sector calls for support

The average nightclub business is burdened by debt topping £230k thanks to the pandemic, with sector bosses calling for more support.

Clubs are no longer required to ask revellers to show their NHS Covid Pass on entry, however the sector has said a full Covid recovery was far away.

The Night Time Industries Association (NTIA) said there was a 40 per cent drop-off in trade across the night time economy during the festive period due to Covid measures.

Night time bosses have called on ministers to consider long term aid, including further grants and an extension of VAT and business rates relief. These measures would help businesses tackle cost inflation and short-term cash flow issues after a disappointing Christmas, the NTIA said.

Michael Kill, CEO of the Night Time Industries Association, said many businesses were now concerned they would not survive beyond February.

Kill added: “While we celebrate the end of uncertainty, the real impact of recent months is coming to light. It is vitally important that the government allows the night time economy to trade indefinitely, building momentum towards pre-Covid trading levels, as well as building customer confidence.”

The trade organisation has also called for flexibility around planning and licensing to “give businesses the best opportunity to diversify and maximise trading capacity.”

Separately, hospitality bosses have warned of price hikes on food and drink as the sector tackles rising utility bills ahead of hiked tax bills in April.