Fears for future of nightclubs
SCOTLAND’S nightclubs and music venues are facing ‘financial Armageddon’ with more than eight out of ten planning redundancies.
The night-time economy is facing a ‘fatal’ blow as lockdown continues with no plan for clubs to reopen in the near future.
A survey found 83 per cent of businesses in the sector are set to make staff redundant in a matter of weeks, while 58 per cent fear they will shut within two months.
The dire situation will increase pressure on ministers to provide a bailout to prevent widespread lay-offs and closures.
The Night-Time Industries Association Scotland (NTIAS) surveyed its membership of nightclubs, late-night bars and live music venues to assess the impact of the coronavirus pandemic after the lockdown.
It is now leading calls for an extension to the job retention scheme that is set to end in October.
The NTIAS said that ‘without immediate additional help and clear indication of when we can reopen, we are facing financial Armageddon’.
The association, which received 268 responses, said 75 per cent of businesses were set to make over half of their workforce redundant in a matter of weeks when the job retention scheme ends.
NTIAS director Mike Grieve said: ‘In the case of nightclubs, we were the first to shut down and without a shadow of doubt we will be the last to reopen.
‘Meanwhile, there has been a staggering lack of support available to keep these economically significant and culturally vital businesses alive to protect the future of our hugely vibrant nightlife sector.’
Donald Macleod, owner of The Garage nightclub in Glasgow, said the night-time economy ‘must be given the emergency Scottish Government funding it so urgently requires in order to survive’.
Concert promoter Geoff Ellis said: ‘The whole sector is in dire need of government support – and very soon.’
A Scottish Government spokesman said: ‘We agree with Scottish businesses who are warning of the risks of not extending financial support.
‘But it is the UK Government which set to withdraw furlough support in October, putting many thousands of jobs at risk.’