Recent flash survey of over 400 businesses by the NTIA & Sprout CRM has shown that 75.6% of night time economy and hospitality businesses will be out of business by Christmas.
The results of a new survey conducted by Sprout CRM and Night Time Industries Association released today found that 75.6% of businesses said they will be closed for good by Christmas, with over 73% of businesses making redundancies since the start of the pandemic, with 65% already making over 40% of their workforce redundant, with many more to follow after the announcement of restrictions, ahead of the Christmas period.
The survey also highlighted that 74.4% of businesses surveyed were commercial tenants with 77.6% with over 2 Quarters in rent arrears and were suffering extreme financial hardship. The new restrictions coming in next week continue to intentionally exclude the night time economy, the festive period plans will break the back of thousands of businesses and hundreds of thousands of jobs lost leading into January.
Our sector works incredibly hard alongside Government departments, to ensure that our businesses are ‘Covid Safe’, only to be hit, yet again with unworkable and unviable business restrictions, that have no scientific evidence base. Industry and business leaders are speaking up today, highlighting the immense impact of restrictions to their sector, individual companies releasing huge redundancy figures, business owners suffering from mental health, and suicide rates within the sector steadily increasing.
We are being sacrificed in favour of other sectors to open during the festive period; intentionally destroying each and every opportunity for the night time economy to survive.
Michael Kill, CEO of NTIA said:
“This announcement by the Government has led us to believe that they are intentionally aiming to collapse our sector. Every town and city across the UK stands to lose valued and much loved venues. This will be another stab in the heart of our town and city centres”
“We stand to lose the cultural institutions and amazing workforce of professionals that the UK are renowned for globally. Our clubs, bars, venues, security, freelancers, staff, managers, DJ’s and many more will lose their livelihoods and continue to suffer financial hardship without Government intervention”
“I make a direct appeal to the Prime Minister – Mr Johnson, what are you doing to save the lives and livelihoods of the many businesses and workers within the night time economy, businesses that have been closed since March and are continuing to suffer? They have staff and freelancers that will lose their jobs irrespective of furlough because the businesses won’t survive”
“What do you say to that Prime Minister, I hope you are sleeping well at night because thousands within our sector are struggling to sleep, in fear of their future.”
Key survey findings:
75.6% of businesses will be closed by Christmas
Workforce and Redundancies
73.1% of businesses surveyed have made redundancies since the start of the pandemic.
65.2% of businesses surveyed have made over 40% of there workforce redundant already and are set to make further redundancies before the end of the year
74.4% of businesses surveyed rent their property as a Commercial Tenant
70.6% of businesses surveyed are in rent arrears
77.6% of businesses surveyed are Over 2 Quarters in rent arrears
Business Support Grants
On average £4227 per month has been received as a grant by businesses surveyed, bearing in mind that compared to operating costs this is support is the equivalent to a moderate proportion of costs
Average Rateable Value
Average rateable value for businesses surveyed is £99,005 substantiating the fact that many have been outside of RV thresholds for the initial grants and have limited or no support outside of Furlough and loans.