Late-night sector loses 86,000 jobs due to pandemic

By Michelle Perrett

Published: 13 October, 2021

The UK’s night-time cultural economy (NTCE) sector has been ravaged by the pandemic, with around 86,000 jobs lost in the sector since the 2019 high, a new report has found.

Commissioned by the Night Time Industries Association (NTIA), the new report, showed for the first time the value of the UK’s night time cultural economy, which was 1.6% of GDP – or £36.4bn – in 2019. This contribution accounted for 425,000 jobs across the UK.

It also revealed that the NTCE had lost “proportionally more” trade at £36bn than other sectors in the out of home leisure economy.

The NTIA said the ‘revelations’ have implications for the wider economy’s recovery from the pandemic, with clear evidence of significant economic ‘scarring’.

It said that while the Government is portraying shortages in many sectors as being ‘transitional’ on the path to a high wage economy, there are fears that many of the jobs lost to the pandemic in the night-time economy sector will be lost for good.

Michael Kill, CEO of the NTIA, which has been leading the opposition to government proposals for vaccine passports, said that the new data showed that “it is the worst possible time to introduce vaccine passports, which will further damage a sector essential to the economic recovery”.

The intervention comes after the NTIA has made a series of recommendations to the Chancellor on how to support the sector ahead of the upcoming Budget. NTIA is calling for the Chancellor to extend the 12.5% rate of VAT on hospitality until 2024, including door sales, as well as freeze alcohol duties.

In the foreword to the report, co-chair of the All-Party Parliamentary Group for the Night Time Economy, Conservative MP Christian Wakeford, commented on the importance of recognising the value of nightlife industries, but warned, “as we look to rebuild from the devastation of the pandemic, we must not leave this vital sector behind”.

Kill added: “We are pleased to be able to present today this important and timely piece of work quantifying, for the first time, the size of the night time economy in the UK.

“It’s timely because at this moment, governments in Scotland and Wales are pressing ahead with chaotic vaccine passport plans, and the UK Government refuses to rule out their use in England. It is the worst possible time to introduce vaccine passports, which will further damage a sector essential to the economic recovery.”

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