GOODNIGHT TO THE CITY’S CLUBS?
Warning that £340m industry is in danger of collapse unless the Government steps in
NEWCASTLE’S renowned nightlife is in danger of collapse after becoming the “forgotten” victim of the coronavirus outbreak, it has been claimed.
Most of the city’s nightclubs have remained closed despite the decision to allow pubs and restaurants to reopen.
Newcastle’s nighttime economy is worth £340m per year and employs around 6,500 people.
And now city centre organisation NE1 has called for urgent help for the sector and warned that a number of nightclubs are at risk of imminent collapse.
The warning comes shortly after research by the Night Time Industries Association (NTIA) showed 58% of businesses within the UK night-time economy fear they will not survive longer than two months without further Government support.
Nightclubs and other venues in the nighttime economy are one of the few remaining sectors without any clear guidance from the Government on when and how they can reopen.
NE1 chief executive Adrian Waddell said: “We need the Government to step in to support nightclubs, one of the last remaining sectors of the economy that is still being forced to remain closed. Nightclubs are the forgotten industry.
“In Newcastle, these venues make a huge contribution to the city’s nighttime economy as well as giving the city its unique vibrancy. We want and need them to survive lockdown and be in a strong position to reopen when it is safe to do so.”
NE1 say Newcastle’s nightlife helps attract visitors from across the UK and overseas, and has called on the Government to extend the furlough scheme for businesses like nightclubs which have been prevented from reopening. It has also suggested a specialist grant scheme to support these businesses until reopening is permitted.
The Government has previously bowed to pressure to help businesses particularly at risk from the coronavirus lockdown, and recently announced a fund to help small music venues that have also been unable to re-open.
Among the nightclubs warning of collapse is Newcastle’s World Headquarters, which found itself above the Government threshold for business rate relief and is facing a year without any income.
Owner Tommy Caulker said: “We are in real difficulty. It really is the 11th hour for us. We operate from an old warehouse, we have no outside space – people come to us for music-led events.
“I used the furlough scheme, but with this coming to an end, I have had to make staff redundant and I may be forced to sell the building if no financial help is offered quickly.
“We operate on extremely tight margins and it is not economically viable for us to reopen if we can’t operate at capacity. We are submitting a grant application to the Arts Council for money to help us survive – if successful it will be used to pay our mortgage and insurance costs and to tied us over until we can reopen.
“But timings are crucial – if we don’t open this autumn when a new batch of students returns to the city we will have lost the moment when habits are set. If nightclubs are not open it will be difficult to attract and keep custom.
“We need the Government to extend the furlough scheme and the business rates holiday for our sector – or else there is a real risk that clubs like mine that have been part of the fabric of the city for decades will be lost. It is same for other clubs in the city – the very nature of nightclubbing and dancing means it is impossible to socially distance. I have dedicated my life to the club and the community but I won’t be able to sustain it without help. World Headquarters is currently ‘mothballed’ and will stay that way for the foreseeable future. If this goes on until March we will have had no income for a year – if the Government does not throw us a lifeline, we will never reopen.”