The cost of utilities is now the second biggest operating cost business in the night time economy, the Night Time Industries Association (NTIA) has claimed
The association said that in a matter of months, energy costs are having a greater financial impact than rent and business rates combined.
As an example, the NTIA said that a bar operator whose energy costs were £35,000 two to three years ago, is now seeing that figure rise to in the region of £85,000, which is unsustainable.
It said the culmination of a range of escalating costs, from staffing and supply chain increases to insurance, was placing businesses in an untenable position, with many facing closure over the coming months without intervention.
“Each day we are seeing businesses receive energy contract demands of between 300% - 1000% of their current contract rates,” Michael Kills, CEO, NTIA said.
““The annual energy costs under new contracts for many will dwarf the combined cost of rent and business rates.
“This is unsustainable! It is vital now that the new Prime Minister and their administration act swiftly to implement a rescue package for businesses, which should include a reduction in VAT, extension of Business Rates Relief and an energy cap for SME businesses.”
Sacha Lord, chair of the NTIA and night time economy advisor for Greater Manchester, added: “Without immediate intervention, I have no doubt that we will see the closure of thousands of venues across the UK, an outcome which will have dire consequences for our country’s economic growth.”
