- Advertisement -spot_imgspot_imgspot_img
8.5 C
Bradford
Sunday, November 2, 2025

Crippling running costs are causing ‘spate of closures’ in Newcastle

Newcastle City Council says that a meeting is now planned with city centre traders to help address the problems they are facing.

Council bosses have vowed to “do all we can” to protect Newcastle city centre’s bar and restaurant scene, after a spate of closures.

Patrons have been left devastated by the loss of some of Tyneside’s most popular venues over recent months, as the hospitality trade grapples with tough times brought on by a cocktail of challenges – including high energy costs, rent rises, increased National Insurance contributions, and the cost of living crisis meaning people are spending less money on nights out.

An image of Prohibition, July 2022. Image: Google Maps

Much-loved speakeasy bar Prohibition, where Sam Fender famously gave a surprise performance in 2023, has become the latest city centre location to announce its closure due to crippling running costs.

News that the Pink Lane bar is expected to shut this summer comes soon after the recent closures of bar and restaurant Horticulture, where owners are considering its future alongside sister venues El Guapo and Horticulture Coastal.

The Earl of Pitt Street, Leila Lily’s, Riverside and the Hard Rock Cafe have also shut up shop.

Newcastle City Council says that a meeting is now planned with city centre traders to help address the problems they are facing.

Labour cllr Dan Greenhough told the Local Democracy Reporting Service that, despite the recent closures, there was still “significant interest” from businesses looking to move into the city centre.

Upcoming developments include the opening of two new Lane 7 sites and the huge Freight Island venue due to take over the top floor of the vacant former Debenhams unit in Eldon Square.

Officials are also hopeful that the prospect of thousands more workers coming into the city centre every day once the new HMRC offices on Pilgrim Street are completed will provide a major boost to Newcastle’s food and drink sector.

Denton and Westerhope Cllr Dan Greenhough. Image: Dan Greenhough

Cllr Greenhough, the city council’s cabinet member for economy, jobs and skills, said: “To lose any business from the city is a huge shame and we appreciate that this will be a difficult time for those directly impacted.

“At the same time, we are seeing significant interest from businesses wishing to open up in our city and many have announced their plans in recent weeks and months. I appreciate the current financial climate is a challenge for businesses, but Newcastle continues to be an attractive place for a range of sectors, including retail and leisure.

“Alongside our partners in the city, we are in the process of setting up a meeting with local businesses to better understand their concerns and the challenges they face, and will do all we can to support them going forwards.

“We’re also continuing to revitalise our city centre to make it more accessible and inviting for residents and visitors, with works at Grey Street, Ridley Place and Saville Row to be complemented by the ongoing transformation of Northumberland Street and improvements to the Grainger Market.

“Our teams continue to support businesses in a range of ways, including through our Business and IP Centre offering expert advice, the Business Energy Efficiency Team helping to reduce businesses’ operating costs, and our Business Rates Team who are ready to support any operators who believe they may be eligible for rates relief.”

- Advertisement -spot_imgspot_img

Latest News