London Assembly investigates night-time economy as UKHospitality voices concerns

By James Bayley

Published: 09 September, 2024

The London Assembly’s Economy, Culture and Skills Committee has launched an investigation into the challenges facing the city’s night-time economy, focusing on the long-term effects of the pandemic, rising inflation and the ongoing cost-of-living crisis. The inquiry aims to assess how well London’s night-time leisure sector has recovered and to explore how existing mayoral policies support the ambition of a “24-hour city”.

The night-time economy has struggled to regain its pre-pandemic levels, with the value of the sector and the number of workers still below those seen in 2019 and 2017 respectively. The closure of late-night venues, particularly LGBTQ+ spaces, has been part of a national trend, further exacerbated by rising rents, changing attitudes to alcohol and inflation-driven costs.

The Committee is seeking input from various stakeholders, including businesses, trade unions and trade associations, as part of a Call for Evidence.

Read more: Scottish hospitality faces regulatory challenges amid visitor levy and cup charge plans

Kate Nicholls, chief executive of UKHospitality, welcomed the investigation but expressed concerns over the fragility of the sector: “Hospitality and leisure businesses are central pillars of London’s late-night economy, with the hospitality sector being the city’s second-largest employer with almost 600,000 employees – many of these working at night,” she said.

Nicholls noted that while positive action had been taken post-pandemic by the mayor, the industry faces significant hurdles: “Businesses are continuing to contend with higher costs, fiscal and regulatory roadblocks and a decline in consumer confidence, which all present significant barriers to growth.”

She highlighted licensing issues in some London boroughs, particularly Westminster, where stringent limits on trading hours hinder the Mayor’s plans for a 24-hour city. Nicholls added: “This significantly curtails venues’ ability to match customer expectations compared to other UK and international cities.”

Concerns over increased crime near late-night venues were also raised, with businesses forced to invest heavily in security, which has impacted costs and affected both staff and customer confidence.

Nicholls urged the Greater London Authority (GLA) to address these issues, stating: “It’s crucial that the GLA prioritises aligning areas where restrictive operating environments exist with the shared vision for a 24-hour London, to help encourage the growth and development of London’s late-night industry.”

UKHospitality also called on the GLA to work more closely with the police to tackle crime in night-time hotspots to protect London’s reputation as a leading leisure destination.

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