Emergency budget urgently needed to protect night time economy, say business leaders
The Night Time Industry Association is meeting in Bristol as rising costs threaten to ruin trade
Business leaders are calling on the Chancellor to introduce an emergency budget, to save the night time economy.
That is what we have heard as the Night Time Industry Association (NTIA) holds a summit in Bristol (7-8 April).
The event at the Bristol Beacon is featuring talks and debates on how the industry can best recover from the coronavirus pandemic, as well as how it can manage the cost of living crisis.
For the past two years businesses like pubs, clubs, restaurants and events have been offered relief including tax cuts, grants and furlough to help them survive the pandemic, but with much of that now gone there are fears many will go under.
Speaking exclusively to us, NTIA chief executive Michael Kill said the government must offer more support.
"It's been catastrophic (since 2020)," he told us.
"The peaks and troughs over the last two years, where we feel that we're making ground and then suddenly the narrative changes, has been horrendous for people.
"We're now faced with overseas crises, we're faced with cost inflation, and we know that it's going to hit the industry."
Mr Kill told us the government must draw up an emergency budget offering businesses greater support again, like in 2020, or many will fold.
Just yesterday (April 6) the government introduced a National Insurance (NI) rise meaning employees, businesses and the self-employed will pay an extra 1.25p for every pound earned.
Meanwhile having been down at 5 percent for a time during the pandemic, VAT has now reverted back to its standard rate of 20 percent, while energy bills are set to soar.
"We know we need an emergency budget because the autumn budget is too far away and we're going to lose too many businesses and too many jobs in that period," Mr Kill said.
"We know what's coming and we're lobbying hard to the Chancellor and the Cabinet Office to ensure that they understand that."
A crucial summer
In recent weeks we have heard stories of certain events, stalwarts of the calendar, which could fold after this summer.
We asked Mr Kill if he has heard similar stories across the country.
"Exactly," he said.
"We are hearing so much pressure from cost inflation it is phenomenal.
"From energy costs, to hiring cabins, toilets, stages...with NI going up, I'll give you an example.
"We heard recently someone who paid £35,000 a year for their energy, going up to £90,000 a year for their energy.
"It's not sustainable".
What is needed
We are told the NTIA had lobbied heavily for the NI increase to be delayed, to no avail.
If that cannot happen, Mr Kill said what would really help is a reduction in VAT once again, as well as other help.
"Our industry is really pressured with cost and at the moment people are really wondering whether they are going to be able to sustain this past this year if things don't go the right way.
"From our perspective we're in a perfect storm at the moment, which is the worry...at some point it is going to bite."
South West events agree
Among the delegates attending the summit is Tom Paine from the group Team Love, which organises several major music events in Bristol including Love Saves the Day.
This year will mark the festival's 10 year anniversary with it going ahead in Ashton Court for the first time, featuring headliners Bicep and Chase and Status on June 2-3.
He agrees with Mr Kill, that events are going to struggle to last without change.
"In the event industry at the moment we're looking at infrastructure and production costs rising from 30-35 percent across the board," he said.
He says Team Love were among those urging the government not to increase VAT back up to 20 percent.
"Sadly they didn't listen," he said.
"Logic" he said, suggests some events will not survive.
"If you look at most operating profits of festivals, they're probably operating in the margins of 10-20 percent, 20 percent being really, really good," he said.
"If you're seeing infrastructure and production costs going up 35 percent, well hold on, that's all your potential profit.
"It's a real worry."