Industry survey finds businesses have invested heavily in readiness for a 21 June reopening that's now been cancelled
The UK's Night Time Industries Association (NTIA) has predicted that the UK government's decision to extend lockdown conditions for a further four weeks after the proposed loosening date of 21 June will have devastating consquences for the night-time economy, with as many as one in four related businesses potentially facing permanent closure.
The gloomy NTIA forecast is based upon a flash poll of 300 relevant businesses which was carried out once rumours that lockdown may be extended began to circulate. The survey found that:
* One in four businesses will not survive longer than one month without further Government support and 50% no longer than two months.
* 54% of businesses have spent over £15K in preparation for reopening on 21 June and 17.8% have spent over £40K.
* One in five businesses estimate they will lose over £40K per week in revenue while restricted from trading or closed due to the delay
* 58% of businesses estimate they will lose over £10K per week in revenue
* 33% of businesses estimate they will lose over 30% of their workforce.
NTIA CEO Michael Kill said:
“Night time economy businesses have waited patiently for their opportunity to open for over 15 months. Many have not survived, some are on a financial cliff edge, hundreds of thousands of jobs have been lost, a huge pool of talent has been swept away and others have been left to suffer extreme financial hardship. We should not underestimate the importance of 21June to these businesses, employees, entertainers and freelancers, a day when they should be given back their opportunity to trade, regain their livelihoods, careers and social well-being.”
The NTIA is calling for protective measures to be put in place immediately, including the extension of existing Business Rates Relief, Restriction Grant for Busineses, Forfeiture Moratorium and VAT Relief schemes.
For more on the findings of the survey, and Michael Kill's full statement, see the NTIA's own website.