Nightclubs and bars have returned to growth for the first time in more than a year, but a trade body said early signs of stability come after the late-night industry has shrunk by more than a quarter since the pandemic.
The Night Time Industries Association (NTIA) called on Chancellor John Healey to use his autumn Budget statement to help set the industry on the path of recovery.
Its data, produced with market analysts NielsenIQ, showed the number of venues operating in the late-night economy increased by 0.4% between March and June, net of closures.
The figure incorporates bars, nightclubs and casinos that are open late into the night.
This marks the first time that the sector has grown in size since March 2025, which the trade body said reflected a small but significant reversal after years of the industry shrinking in size.
Compared with June last year, there are 3.1% fewer venues, according to the research.
Its analysis also unveils a steep decline since the Covid-19 pandemic, with nearly 29% of Britain’s late-night economy disappearing since March 2020.
This has been driven by a 36% decline in the number of nightclubs, which have been hit the hardest by the post-pandemic recovery and a broader shift in consumers’ going-out habits.
In contrast, the total number of bars has increased by 3.1% since pre-Covid, marking the only major sub-sector to have grown in size in the past six years, according to the report.
Michael Kill, NTIA’s chief executive, said: “Britain’s nightlife has spent six years taking hit after hit, and these figures show just how much we have lost.
“Almost three in 10 late-night venues have disappeared since Covid and more than a third of our nightclubs have gone.
“For the first time in a long time, however, we can see the beginnings of something different.
“Venue numbers have edged upwards, entrepreneurs are investing and consumers are still demanding new experiences.
“There is a recovery waiting to happen, but the Government now has to decide whether it wants to accelerate it or tax and cost it out of existence.”
Mr Kill said businesses in the industry “need meaningful action on taxation and the cost of operating, alongside serious investment in transport, safety and late-night infrastructure”.
Nightclubs and bars have been among businesses in the hospitality industry calling for more support on costs such as business rates – a tax on the value of properties – and employers’ national insurance contributions.
It also comes amid changing consumer habits, with NIQ’s data showing that share of sales made in the late evening and into the night have dropped as consumers shift to going out and returning home earlier in the day.
Across the wider night-time industry, encompassing all licensed premises in Britain, the total number of venues was more or less flat in the three months to June, the report showed.
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