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How the Cost of Energy is Eating Into the Profits of Nightclubs in Leicestershire UK

Nov 28

The cost of energy running a nightclub is a major concern for many businesses. It has increased by nearly three times since May and power prices have risen by over 50 per cent. This is eating into the profits of many companies, and many promoters are unsure of how to cope with the escalating costs. An NTIA report in June found that 54 percent of nightlife businesses had not renewed their gas contracts due to rising costs.

Impact of rising energy costs on nightclubs

The cost of energy is eating into the profits of nightclubs and hospitality businesses in the UK. Rising energy costs are making businesses more difficult to run, causing them to have to cut hours and cut staffing. Five hospitality organisations have written to the government urging them to intervene, urging it to provide a comprehensive support package for nightlife businesses.

Energy bills for businesses are not capped like those of households, meaning they are paying the "going market rate" for the duration of their contract. While McGann's bill is more than double what it was in 2013, the figures of venues could increase to 300% or more.

The government has pledged to offer new help to businesses to address the issue. Recent cuts in VAT and fuel duty have helped businesses, and the government has also extended the Recovery Loan Scheme. It has also increased Employment Allowance to £5,000, and eligible businesses can also claim 50% off their business rates bill for 2022-23. However, despite the recent relief, the government has failed to provide specific help for nightclubs and other hospitality businesses. Meanwhile, Tory leadership candidates have promised to offer further help to businesses and households.

The increase in energy costs is also having a negative impact on arts venues in the UK. The rising cost of energy is affecting thousands of households and arts venues. The government has introduced a cap on the price per kilowatt hour, but this cap only applies to households. In October, the cap will raise a typical bill to £3,549 a year, and the cap will rise to £5,400 by January.

Impact of COVID restrictions on nightclubs

Following an outbreak of the coronavirus that has struck nightlife in the UK, British Prime Minister Boris Johnson has ordered nightclubs to close earlier and for a longer period of time. Some operators are worried that the new rules could mean the end of their businesses. The government has already forced some clubs to close for 15 weeks earlier this year. Among the new restrictions are a ban on serving customers at the bar and a deadline of 10pm for all hospitality establishments. This is a crucial period of the night for many clubs and nightlife venues.

Initially, the restrictions were introduced nationwide in England from March to June, but were soon complemented by local measures in many areas of the UK. Leicestershire, for example, was the first local area to be targeted, and later many other regions followed suit. These restrictions were then lifted in October 2020, when the restrictions were removed across the country and a new three-tier system of restrictions was implemented.

The restrictions on nightclubs have been met with considerable opposition from members of the hospitality industry and the general public. They are causing confusion and uncertainty in the business community, and some businesses have even shut their doors. But businesses have been warned that they could lose money if customers don't feel safe. This uncertainty is a big issue for the government, but it has remained firm in its stance.

Impact of rising inflation on businesses

Leicestershire County Council's budget gap is set to widen to £28 million next year, and could reach £140 million by 2026. The county's leader, Nick Rushton, has described the situation as 'frightening'. According to a key report by the council, costs are rising at an unprecedented rate. Rising energy bills and a shortage of labour are causing input costs to rise. However, this should only be a temporary blip as the economy adjusts to Covid-19.