Night time industries remain a significant employer in and contributor to the UK economy. However, despite increased consumer spending over the last three years, when adjusted for inflation, turnover is almost stagnant, putting businesses at risk.
These are some of the key findings of the Night Time Industries Association’s third annual ‘Night Time Economy Report’, which crunches data from 2022.
Overall, consumer spending in 2022 was £136.5 billion, up from £95.7 billion in the COVID-19 impacted 2021, but also an increase on the £121.3 billion generated in 2019, the year before the pandemic hit. Which is an initial indication that there is cause for celebration. Indeed, the NTIA notes this is an indication that people are keen to socialise post-pandemic.
However, it also notes, “large rises in inflation have essentially wiped out any turnover gain” and, as a result, the night-time economy “has been in a period of financial stasis”. In fact, it reckons, when factoring in the impact of the pandemic and inflation, the sector has actually lost £95 billion over this period.
Figures such as these are a tool for lobbying the government, highlighting the importance of the sector to the wider economy and the need to ensure its stability. A key figure for this is ‘gross value added’, which is the government’s measure of a sector’s overall performance. The NTIA says that this was £43.5 billion in 2022, which is down from £47.5 billion in 2019.
This, the report says, shows that while there were outward signs of recovery in the night time economy in 2022, “in terms of its underlying fundamentals - eg its productivity and profitably - it is a sector that remains hobbled”.
Introducing the report, NTIA CEO Michael Kill says that it is clear that the night-time economy has “weathered storms of uncertainty” and that the rise in consumer spending indicates “a pent-up demand for social engagement”. However, he adds, “underlying challenges persist, threatening the sector's sustainability”.
“We must heed the clarion call for action”, he says. “The challenges posed by the pandemic and the looming spectre of economic uncertainty demand concerted efforts to safeguard the [night-time economy’s] future. As we navigate the complexities ahead, let this report serve as a compass, guiding our collective endeavours to ensure a thriving, resilient night-time economy for generations to come”.
