Businesses in the UK’s late-night economy are battling for survival, with more than one in four venues shutting their doors since 2020 as the sector faces what industry leaders describe as “systematic dismantling”.
The latest Night Time Economy Market Monitor from the Night Time Industries Association (NTIA) and consumer intelligence platform CGA by NIQ paints a bleak picture for the sector.
The data shows that approximately 800 late-night venues have closed, leaving only 2,424 nationwide, with an accelerating loss rate of three venues per week over the past three months. This margin represents a 26.4% contraction in the late-night sector overall since March 2020, nearly double the contraction seen across the wider hospitality sector, which has fallen by 14.2% over the same period.
“We’re witnessing the loss of important social infrastructure from our towns and cities,” said Michael Kill, CEO of the NTIA, in a statement. “Nightclubs and late-night venues are more than just places to dance. They’re cultural institutions, economic engines and cornerstones of community life.”
Smaller operators hit hardest
The closures have hit independent operators hardest, with their numbers falling by 16.2% since the pandemic in 2020. Industry leaders note that the sector contributes around £136bn to the local economy and employs over two million people.
According to Karl Chessell, business unit director for hospitality operators and food at CGA, this decline reflects a “perfect storm” of soaring operational costs, including increases to the national minimum wage and national insurance in April, coupled with a “continued shortfall in post-pandemic support for independent operators.”
The NTIA argues that without urgent government intervention, the crisis will deepen. Its #StopTheDancefloorTax campaign is calling for a VAT cut for hospitality, reversal of National Insurance hikes and sustained business rates relief. “The time to act is now,” Kill concluded. “We must stop the silent slide into nighttime deserts before the damage becomes irreversible.”
Shifting consumer behaviour
For businesses in the food, drink and hospitality sectors, the shift in consumer behaviour represents both a challenge and an opportunity. Fewer nights out means more nights in, with young people, especially, spending more time socialising at home and on social media. Some experts also link the decline of the UK’s nightlife sector to rising interest in products related to health and wellbeing, including increasing demand for low and no-alcohol drinks among young consumers.