SCOTLAND's towns and city centres could be left with little or no nightlife or hospitality "within months" without urgent Government invention to address spiralling energy costs, an industry body has warned.
Night Time Industries Association (NTIA) Scotland is urging Governments in Holyrood and Westminster to take "bold and decisive" steps to prevent a "catastrophic failure" of the hospitality and late-night economy sectors.
It said that small businesses have seen such high energy cost rises over the last few months that the situation is now "unsurvivable" for most without "immediate and large-scale intervention".
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Mike Grieve, Chair of NTIA Scotland, said: "With many hospitality businesses already operating on reduced hours due to post lockdown pressures, including the recruitment crisis, inflation, increased wage costs, rising wholesale prices and the overall cost of living crisis, the current situation where energy costs are spiralling completely out of control threatens the very existence of our industry across the U.K.
"Without urgent intervention from both the U.K. and Scottish Governments to provide direct help to businesses, and to impose an affordable cap on energy, there will be little, or no nightlife or hospitality left in our town
and city centres within a matter of months.
"This existential threat not only impacts business and employment and therefore livelihoods, but potentially devastates the rich cultural fabric of our towns and cities."
NTIA Scotland is calling for the UK Government to reduce VAT to 12.5% or lower for all hospitality sector premises with immediate effect.
Further to that, it is urging the Scottish Government to pass along the full 12 months of 50% rates reduction for this financial year that has been given to businesses south of the border.
And they are also calling on the Government to include small businesses in the domestic energy price cap, with small business energy prices frozen at no higher than the current domestic price cap of around 28p per KWh.
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