“THE GOVERNMENT NEEDS TO TAKE ACTION NOW – OUR INDUSTRY IS ON THE EDGE!!”
– Michael Kill, CEO of the Night-Time Industries Association
The NTIA heavily criticize the PM’s announcement for people to “Avoid pubs, clubs, restaurants, theatres and other such social venues.”
This is devastating for Night Time Economy & Events sector, leaving many businesses, staff and supply chain in the depths of uncertainty with no support mechanism.
The PM has unbelievably advised the public to turn their back on the NTE Events sector and saved the Insurance companies the expense of an official closure.
Thousands of businesses will close their doors and hundreds of thousands of jobs will be lost across many sectors, leaving many in financial difficulty.
“The UK Government needs to follow the lead of France who have has said it will not allow any business to fail and offered €300 Billion, alongside Germany and some of our European and Scandinavian counterparts, showing uncompromising strength in supporting business and employees through this difficult period.”
The Government must act now to stop these businesses from going to the wire, the current support within the budget is not enough!
We ask that every business owner, operators, artist, an employee within this Industry comes together to demand that the government step forward, as it did during the banking crisis, and do the right thing and provide emergency medium-term funding for Night Time Economy and Events Industry to underwrite the next period. It needs to provide funding for all staff for the next extended period until this is over!!
#weareinthistogether @wearethentia #Savenightlife
The NTIA has been working with our members and partners to get a view of the current trading patterns and issues facing the Industry:
Night Time Economy Performance Overview (Business Levels) W/E Sunday 15th March 2020
Scotland – 35 – 40% Down
North – 30-40% Down
Midlands – 25 – 30% Down
South – 25 – 30% Down
Wales – 20 – 30% Down
East – 25 – 35% Down
West – 15 – 25% Down
Some are experiencing consistent levels of trade across the weekend, but feedback suggests that with an impending shutdown people are using this as the last the weekend before restrictions come into place for social distancing.
Furthermore, today’s update from our Prime Minister has placed a final nail in the coffin, by not only delaying businesses to close but further advising the public to refrain from all pubs, clubs, restaurants and theatres.
Live Venues & Events have seen last-minute cancellations across the board and shows that have gone ahead have a high level of no shows circa 30-40% with shows and events throughout March and April being cancelled or withdrawn, leaving many venues reliant on third party events with no revenue.
Festivals and events sector ticket sales have stalled, events happening across the summer seems to have been stalled due to many not understanding ticket policy, and post-summer people are more at ease with purchases although public financial the position is being brought into question, will they be able to afford it.
General Overview is that the Events and Festival Sector / City centre property outside of the Business Rates relief will find it hard to survive!
Advance Bookings Private Functions
General consensus is that March / April will see most events/shows cancelled given the growing pressure from the public on venues being closed to safeguard the health of the nation, this is being echoed through artists being at the brunt of the backlash with shows going ahead.
Private functions and corporate events have seen mass cancellations to safeguard the workforce, which for many has left huge financial gaps within forecasting, many businesses are working on contingency plans to safeguard cash flow moving forward.
Resource Levels (Staffing Security)
Feedback is that there is a 10% – 20% Drop off in staff illness, self-isolation which is seen as moderate against usual annual common flu position. There is a challenge with many EU staff making the decision to head back to their country leaving some fundamental staffing issues, but this is mainly in major cities. Operators are challenged with stripping back staffing levels for the immediate future which leaves them exposed contractually, but also has its own issues around staff wellbeing, many staff will be using these jobs to supplement income, operators need clearer communication for support staff.
“Just want to put this out there maybe for the future on how we protect our staff like bartenders, venue managers and tech. They are looking at no income for probably 3 months and are not organised in any way. Let’s keep that in mind for ideas on how to support them.”
– Jorge, Independent Promoter
For most venues and events, cancellations are being confirmed right up until the end of April – Some are experiencing extended cancellations through until May but at present, this is very limited.
Artists cancellations are coming in thick and fast, in particular, touring acts will likely cancel across the board. Tours relying on EU will all cancel in coming weeks as they become unviable.
People are cancelling with very little notice; many cancellations are on the day and are showing concerns for future events.
“Backlash is thick and fast already. Heavily from our European counterparts in the community. I don’t think being open from this week onwards will do anyone any favours really. Even if like us you’re around 500 cap and can stay open.”
– Karlson, Promoter
THE GOVERNMENT NEEDS TO IMPLEMENT THE FOLLOWING RELIEFS
- Business Rates Suspension for all
- The government needs to allow for a financial provision for all staff employed or self-employed who cannot work (up to 3 months)
- Tax Relief for the Hospitality Sector for the next 3 months or foreseeable disruption
- 0% VAT for the Hospitality Sector for the next 3 Months or foreseeable disruption
- Government to Support Landlords to allow them to give rent holidays for businesses for three months.
- Government to facilitate financial support (Bailout) for businesses if forced to close / or ensure government forces insurances to cover closures with an additional clause for all businesses including events and festivals.
- SSP needs to be considered for all companies irrelevant of staffing level and self- employment status.
“If the government wants businesses to survive, then come up with a clear package of support i.e. tax holidays, protection from debt collection, protection from eviction, loans, grants, etc. and communicate that clearly to businesses online and make applying for it easy to do, before you announce closures.”
– Nigel, Club Union
“I have got a full rent suspension from my landlord in the event of business closure when I spoke to him this morning. Can we now take most of my salary off the payroll and distribute to staff who aren’t as lucky.”
– Alex, Behind the Wall