Sacha Lord says government has 'failed businesses' as new report shows UK has lost ‘billions’ from the hospitality industry

The UK has lost billions of pounds in income from the pub, restaurant and nightclub industry in the post-pandemic period, according to a new report. The hospitality business contributed nearly £37 billion in gross domestic product (GDP) to the UK economy in 2019, but this had dropped to £24 billion by 2021.

The startling new figures have been published by the Night Time Industries Association, as record numbers of bars, restaurants, pubs and theatres close down. The number of people employed by the sector has also fallen from 425,000 people across 38,000 businesses in 2018, to 392,000 jobs and 34,000 businesses in 2021.

Sacha Lord, chair of the NTIA and the night time economy advisor to mayor Andy Burnham, said in a statement: “The Government has failed independent business operators and the cultural sector across the UK. The report produced by the NTIA shows how hard these sectors have been hit over the last few years, delivering a stark reality of the challenges faced by the industry.”

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The NTIA’s CEO Michael Kill added: “As we head further into a cost of living crisis, despite the bounce back in jobs and firm numbers, consumer spend, sector income, productivity and profitability, continue to struggle. The recent announcement of December GDP figures suggest we have technically narrowly missed the recession, but it is clear that thousands of businesses are suffering the economic and physical impacts of a recession.

“The report shows some small signs of recovery, but it is clear that the industry is some way behind the rest of the economy. It is now vitally important that the government take the proactive step to cut VAT in the March budget, for all