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The Growth of the Night-Time Economy

6 December 2019

"A study undertaken by the Royal Town Planning Institute (RTPI) found that 44 per cent of nightclubs in the UK closed between 2005-2015, and a further 25 per cent of pubs have closed from 2001-2016."

The night-time economy is a rapidly expanding part of the UK economy and equates to the country’s fifth-biggest industry. According to the Night Industries Association, it accounts for at least 8 per cent of the UK's employment, boasts annual revenues of £66bn, and is a growth sector that is constantly evolving and diversifying. In fact, the recent growth of London’s night-time business activity has prompted the appointment of Amy Lamé – the capital’s first ‘’night czar’’ - to take charge of the city between 18:00 and 06:00.

Her team at the Greater London Authority (GLA) has conducted comprehensive research into afterhours activity and have identified important sectors, such as live music venues, for future investment. The overall purpose is to help ensure the long term growth of the night-time economy and realise London’s potential as a truly forward-thinking 24-hour city, similar to New York City’s 'city that never sleeps' model.

This ambition is particularly prescient following a sustained period of decline for many of the UK’s most highly regarded cultural venues. A study undertaken by the Royal Town Planning Institute (RTPI) found that 44 per cent of nightclubs in the UK closed between 2005-2015, and a further 25 per cent of pubs have closed from 2001-2016. This is being caused by a number of factors, ranging from a change in consumer preferences, including people opting to socialise at home, as well as external pressures such as the smoking ban, noise complaints and anti-social behaviour.

Indeed, the desire to create 24/7 business is still a contentious issue and it’s fair to say not everybody is on board. Increased levels of noise and an associated rise in anti-social behaviour remain particular concerns for inner city residents and local businesses. However, with a move towards more inclusive after hours activities, including the creation of exhibition space and pop up markets, old conceptions of the British night out may be starting to change.

This sets a delicate scene for those looking to take advantage of this exciting area of growth. The night-time economy can play a major role in helping promote our struggling high streets, with opportunities for landlords and businesses looking to optimise their space at night. Planning Potential’s in-house leisure and hospitality team has a wealth of experience assisting high street operators and local businesses to secure a range of flexible planning consents, to meet specific operational requirements. So, if you’re seeking to change to the way your businesses operates and capitalise on the growth in this sector, our experts can talk you through the process and set out the opportunities available to you. Contact us on 020 7357 8000.

Sam Elliott, Planner