Following extensive research carried out by the NTIA into over 200 businesses within the Night Time Economy, 53.2% of respondents are seeing a 30% increase in operating costs compared to pre pandemic levels.
The culmination of pandemic debt, growing energy bills, workforce challenges, supply chain, increased insurance premiums and product cost increases have created a perfect storm. Operating cost pressures coupled with consumers with less disposable income have seen the early stages of a recession with slowing ticket sales and visitor frequency.
There is still some way to go to see the true impact of cost inflation on businesses, with over 53.8% of respondent businesses still to renew energy contracts. The uncertainty on costs and trading levels has seen over 44.7% respondents “unsure” whether they will survive the next 12 months and 20.8% stating they are not confident, we need the Government and Chancellor to be decisive through a financial intervention.
The Chancellor must consider measures to support businesses, with business leaders calling for a reduction in VAT to 12.5% and an Energy Cap for SME Businesses.
Michael Kill CEO NTIA Says “These figures are extremely hard to ignore, the situation is worsening day by day, with operating costs becoming untenable. We are starting to see the impact on customers through slowing tickets sales, bookings and frequency of visit.”
“Our industry is still extremely fragile, many will struggle to survive another crisis.”
“Time is running out, the Chancellor must act now, and answer the calls from the industry to reduce VAT back down to 12.5% and an energy cap for SME businesses.”