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Nightclubs threaten legal challenge to restrictions in Wales

17 December 2021 By Patrick Schmitt

The Night Time Industries Association (NTIA) is considering legal action following news that Wales is to enforce the closure of nightclubs from 27 December.

With further Covid-related restrictions announced yesterday for Wales by the First Minister, from social distancing in the workplace and shops to the closure of nightclubs, the night time industry has been put in an “untenable position” that leaves it will no choice but to consider legal action, according to CEO at the NTIA, Michael Kill.

Speaking yesterday after news of the restrictions was aired, he said, “We are astounded at the actions of the Welsh Government this evening, the consistent targeting of the nightclub and late night economy sector has gone too far.”

Continuing, he said, “It is very clear that the Welsh Government have purposefully placed restrictions on an industry with no supporting evidence.”

He added, “Nightclubs and the late night economy have been at the sharpest end of the pandemic, and have upheld the Public Heath Strategy within Wales for over 2 years, with closures and mounting debts.”

Concluding, he said, “We have been placed in an untenable position and will now have no choice but to come out fighting,” before stating, “The sector will be considering it’s legal options following this announcement.”

Meanwhile, UK Hospitality has called on the Government for financial support as the bar, restaurant and nightclub sector suffers a £4 billion sales drop.

The association said that the hospitality industry is suffering a drop in trade of a quarter with industry bosses expecting a further drop of the same amount. It also reminded the Government that such figures do not take into account the financial losses incurred by wasted stock, unnecessary labour and other commodities arising from cancelled events and bookings, which may not be covered by insurance.

Prior to the emergence of Omicron and Plan B restrictions, figures showed the industry was on track to reach 95% of pre-pandemic trade levels but consumer confidence has plummeted and businesses are facing unprecedented and catastrophic levels of cancellations.

Pubs, bars, cafés and restaurants have already seen trade fall by a third and are expecting a further 22% drop in bookings for December.

Nightclubs have fared even worse with revenue already down by a quarter. City centres have been particularly hard hit amidst major corporate booking cancellations.

UK Hospitality chief executive, Kate Nicholls said: “Christmas trade is always crucial for the hospitality industry, making up as much as a quarter of the year’s profit for many businesses. Last year Christmas was cancelled and so much rested on this December period for businesses already staggering under a burden of debt incurred from the pandemic and facing rising costs across the board.”

She added, “If operators are unable to trade profitably over the next month, many will simply not survive – and those that do make it through face a return to 20% VAT in April. The Government must step in now and provide measures that support the businesses and jobs in the sector – by committing to keeping VAT at 12.5%, suspending business rates payments for the first quarter of 2022 and reinstating recovery grants.”

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