Cost of living: Glasgow night time economy in crisis

The music scene veteran, who owns legendary clubs Cathouse and The Garage, has been a champion for the city's night-time economy but warns that the industry is currently facing its "biggest threats to existence".

Mr MacLeod is a spokesperson of the Night Time Industries Association and convener of the Glasgow Licensing Forum.

Speaking to the Glasgow Times as we launch a new series unpacking the city's night-time economy crisis, he outlined some of the major factors contributing to the industry "dying on its feet".

The night-time economy encompasses businesses active between 6pm and 6am, like bars, pubs, nightclubs, taxis, and restaurants or takeaways.

The sector generates billions of pounds for the economy and employs thousands of people, but the cost-of-living crisis, soaring energy prices, and inflation have slashed the revenue businesses can earn.

The legacy of lockdown policies, lack of night-time transportation, Low Emission Zone (LEZ), and proposed government initiatives including the deposit return scheme (DRS) are also battering the industry, warns Mr MacLeod.

He said: "I think we have a very broken night-time economy in Glasgow, the pressure is really upon a lot of operators from the post-Covid debt and the cost-of-living crisis."

Like other stakeholders in the hospitality sector, Mr MacLeod is calling for the government to reduce VAT and cut business rates to help save the sector.

He says the night-time industries were some of the worst hit by lockdown measures. Many business owners and workers in the industry felt "left behind in the wake of Covid".

"From the taxis all the way up to nightclubs or bars, we had to fight [to get funding].

"It made me ill because I was one of the people on the front line fighting to try and get money, to try and get our sector recognised and appreciated, bearing in mind that it was worth £5 billion to the economy and in Glasgow employed up to 20,000 people, so that’s a major part.

"Plus, Glasgow is a city of music, but you wouldn’t know it because we were silenced during the pandemic. We’re still silenced in a way, major issues deflected."

The city centre is significantly quieter these days. Work-from-home initiatives, rail strikes, and a lack of night-time transport have dwindled the number of people coming into town.

Less foot traffic coupled with sky-high running costs could be the death knock for the city's nightlife.

Mr MacLeod said: "I think reducing rates and the VAT are two things that both governments could do to alleviate the pressures on businesses, which in turn alleviates the pressure on the public.

"It means we're not driving our prices up all the time which is something that I've been loathe to do."

Donald is “gutted” that so many business owners are wanting to pack it in.

He said: “Glasgow was a club capital of the UK, it was also a UNESCO city of music.

"It was second to none for a night out. Glasgow was the powerhouse of Scotland.

"Not just the night-time economy but it was a powerhouse of Scotland for retail. It was for industry. It was for innovation. It was for hospitality. It was for the night-time economy.

"Now it's not, it's neither of these things at the moment because the foot has certainly been taken off the gas."

In the decades that Mr MacLeod has been a part of Glasgow's music and club scene, he has seen a lot of changes but never conditions this bad, describing it as the "biggest threats to the existence" of the trade.

Despite being hammered from all angles, he remains optimistic.

He said: "We'll fight. We'll continue. We'll win. People still want to go out in the town. People still want to enjoy themselves.

"People still want to have a good time, see live music, eat and sleep in the early hours of the morning. And we want a means to be there for them to help them do that.

"I live and breathe music and night-time. I live and breathe music, dance, and rock and roll. And I think we've got to get back to that. To help the city and be supported in doing so."

He added: "Glasgow Sauchiehall Street needs to thrive again. Let's get it going. Let's go for it."

A spokesperson for the Scottish Government responded to calls for lower VAT and reduced business rates for hospitality.

They said: “We recently launched a New Deal for Scottish Business which will provide an opportunity to discuss how government can better support businesses, using the limited policy levers available.

“We have also set out a strong non-domestic rates regime in 2023-24, delivering a freeze to the poundage and a reliefs package including the Small Business Bonus Scheme, taking over 100,000 properties out of rates altogether.

"As part of this, it is estimated that around half of properties in the retail, hospitality and leisure sectors in Scotland will pay no rates this year.

“We support businesses’ calls for the UK Government to take action and have repeatedly called for more help for business in reserved areas, including VAT and soaring energy prices.”

The Glasgow Times is investigating the city's night-time economy as part of a new series. Please email our reporter Marissa MacWhirter at marissa.macwhirter@newsquest.co.uk if you have any tips, questions, or comments.