Night-time ‘deserts’ forming across UK as bars and clubs close
A quarter of Britain’s late-night venues have vanished since 2020, sparking warnings of “night-time deserts” across the UK. Millennials, it seems, are increasingly exercising their quarter-life crises away from the dancefloor.
The UK’s late-night economy is facing what industry leaders describe as an “existential threat”. New figures from the Q2 2025 Night Time Economy Market Monitor, compiled by CGA by NIQ in partnership with the Night Time Industries Association (NTIA), confirm a 26.4% contraction in late-night venues since March 2020. This equates to nearly 800 closures in just over five years, leaving only 2,424 venues still operating across the country.
The situation has worsened in recent months, with the UK recording an average of three net closures per week. This trend has prompted warnings about the emergence of so-called ‘night-time deserts’, where towns and even some cities are left without a single dedicated late-night space.
By comparison, the broader hospitality sector has contracted by 14.2% over the same period, highlighting the disproportionate impact on late-night operators.
Michael Kill, chief executive of the NTIA, said, “We’re witnessing the loss of important social infrastructure from our towns and cities. Nightclubs and late-night venues are more than just places to dance; they’re cultural institutions, economic engines and cornerstones of community life.”
Cities losing their pulse
Every region of the UK has been affected, but Wales and London have seen some of the sharpest declines, with venue numbers down 16.8% and 15.3% respectively since 2020.
Among major cities, Birmingham has experienced the steepest fall, with a 27.5% drop in its late-night venue count. Greater London now has 343 such venues, down from 433 five years ago, a 20.8% reduction. Edinburgh has seen a more gradual contraction of 13.0%, with just 47 late-night venues remaining, while Liverpool is down 13.9% to a total of 93.
Glimmers of growth amid structural decline
Despite the stark figures for nightclubs and late-night bars, there are signs of resilience in other parts of the night-time sector. According to CGA by NIQ, the number of bars in the UK has increased by 7.6% since March 2024, averaging nearly seven net openings per week. Cultural venues such as cinemas and theatres have also grown, albeit more modestly, up 4.5% over the past 12 months.
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However, traditional nightclubs have struggled to recover. While the number of clubs has increased 5% over the past year, this is set against a total decline of 33.8% since 2020. Michael Kill described the growth as no more than a faint sign of life after years of steady collapse.
Financial strain pushing businesses to the brink
The NTIA says the sector’s fragile recovery is now at risk from intensifying financial pressures. In April 2025, the employer National Insurance contribution rose from 13.8% to 15%, following earlier increases to the minimum wage. These rising costs have hit independent operators particularly hard.
According to a recent NTIA survey of 500 nightlife businesses, 40% expect to close within the next six months unless additional financial support is provided.
Sacha Lord, chair of the NTIA, said the implications go beyond economics. Late-night venues, he explained, are essential parts of local life. They provide jobs, develop new talent and support neighbouring businesses. Without them, he warned, many cities risk losing the vibrancy and social cohesion that nightlife brings.
In response to the ongoing crisis, the NTIA is calling on the government to take immediate action through its #StopTheDancefloorTax campaign. The group has outlined three priority areas for intervention:
- Cut VAT for hospitality and night-time economy
- Restore employer National Insurance thresholds to previous levels
- Sustain business rates relief until meaningful reform
A sector on the edge
As reported by the drinks business in June 2025, the broader night-time economy has made some progress in the years since pandemic restrictions were lifted. However, the latest research suggests that operating costs, tax burdens and changing habits continue to hold back true recovery.
While themed bars and performance venues may be adapting to the new landscape, the traditional nightclub, the beating heart of so many youth cultures and musical movements, remains precariously placed.
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