High inflation impacting night time economy says NTIA
The Bank of England is expected to raise interest rates again which will harm consumers and leave them with less disposable income to spend on things like nights out
The Night Time Industries Association has said that high inflation is still impacting the night time economy and consumer spending.
The trade association believes that despite the warm weather and three bank holidays last month operating costs and consumers tightening their belts have affected the sector.
This comes after it was announced on Wednesday that the rate of inflation in the UK stayed consistent at 8.7% in May rather than dropping as expected.
The Bank of England is expected to raise interest rates again which will harm consumers and leave them with less disposable income to spend on things like nights out.
Michael Kill, NTIA CEO, said: “Figures announced today show no movement in inflation at 8.7%, replicating the rates released in April this year.” This is a stark reality check for the Government, leaving inflation incredibly high that it is having a huge impact on consumers and businesses’ spending and investment.
“Even with warmer weather and numerous bank holidays and national celebrations to strengthen trade, it has not been enough to alleviate the onerous cost of operating for businesses or extend the frequency or spend of consumers looking to go out and enjoy a meal, music event or a social drink amongst friends.”
Kill added: “The Government must consider tackling inflation by bringing down the costs of energy, food and drink through tax cuts, and look to ease workforce shortages, with broader considerations around deregulation, and the ability for businesses to invest in expanding trade without bureaucratic limitations or timescales.”
