Kevin McCourt, 71, owner of Cassanos, a bar, restaurant, and nightclub in March, Cambridgeshire, has discontinued weekly nightclub sessions after 24 years, citing a decrease in patronage. The business proprietor stated that current trading conditions are the worst he has experienced in his 50 years in the hospitality sector. He expressed a belief that the government’s upcoming Budget, scheduled for announcement on Wednesday, holds the potential to “make or break his business.” An HM Treasury spokesperson commented: “We’re supporting businesses, including nightclubs, through pledges to make the business rates system fairer, cap corporation tax at 25% and to publish a corporate tax roadmap.” Mr. McCourt remarked, “We need help, the leisure industry needs help, it’s a disaster.” He added, “We are fighting a losing battle, I have had to close the weekend nightclub sessions, we are just not taking any money. People buy cheap booze from the supermarket and don’t come out till much later. When they do get here, they’re not spending like they did.” Mr. McCourt attributed the reduced customer spending on nights out to the cost-of-living crisis, which he believes is consuming people’s disposable income. He voiced apprehension regarding the implications of the chancellor’s Budget, fearing that an increase in alcohol duty could prove “catastrophic” for the industry. A Treasury spokesperson clarified that alcohol duty is currently frozen until 1 February 2025. The establishment employs up to 14 individuals, and Mr. McCourt indicated that all would experience a reduction in hours and pay following the closure of the sessions. Mr. McCourt suggested that a government-implemented rise in employers’ contributions to National Insurance could be another “nail in the coffin” for the sector, compelling him to “take a long hard look” at his workforce. “We don’t open like we used to,” Mr. McCourt stated. “We shut at 21:00 GMT on Fridays now, done by 16:00 GMT on Sundays, not open at all on a Tuesday, it wasn’t like this before. If it gets any worse, I’ll have to lay staff off.” Mr. McCourt expressed hope for Budget assistance concerning heating, lighting, and power bills, and for the continuation of support through reduced business rates. He warned, “If they put fuel duty up, that will have a knock-on effect on people’s everyday spending.” “It seems the worst it has ever been,” Mr. McCourt observed. “It’s even worse than when we had the pandemic lockdowns.” A Treasury spokesperson responded: “We do not comment on speculation around future tax policies and the chancellor makes tax decisions at fiscal events.” The spokesperson added that the chancellor has made it clear that difficult decisions are necessary to strengthen economic foundations and address the £22bn deficit inherited by the government, with decisions on how to achieve this to be made in the forthcoming Budget. The Night Time Industries Association (NTIA) has urged immediate government intervention regarding the decline of nightclubs, calling on the chancellor to extend business rates relief in the autumn Budget. Michael Kill, the chief executive officer of the NTIA, stated: “Nightclubs are facing an unprecedented crisis.” He elaborated, “Since June 2020, we’ve been losing two nightclubs every week, but in the past six months, this has escalated to three per week. This rapid decline is devastating for our economy, culture and communities.” Kill further noted, “Despite contributing millions in taxes, we are burdened with rising costs and a lack of essential public services. Late-night transport is unreliable, police presence is scarce, and venues are forced to spend on security and cleaning – services that should be publicly provided. “Additionally, bureaucratic systems around licensing and planning are inconsistent and definitely not conducive to growth, weighing us down at every point,” he concluded.

Leave a Reply

Your email address will not be published. Required fields are marked *