Nightlife businesses have experienced a 26% rise in their operating costs in the past year.
The Night Time Industries Association (NTIA) survey reveals the ongoing effects of the pandemic, with businesses on average operating at 68.9% of their pre-pandemic trading levels.
Further cost increases are expected in April, with national living wage, national insurance, VAT and business rates all scheduled to rise.
NTIA CEO Michael Kill said many businesses will be forced to pass cost increases on to customers or risk going bust.
“These statistics show just how bleak things remain for our sector.
“I would now, even at this late stage, urge the Chancellor to postpone all the tax increases to give some perfectly viable night time economy businesses a fighting chance of survival.”