Independent cinemas face going out of business over skyrocketing utility costs

The last full-time independent cinema in the North East has launched an urgent campaign to stop it from closing down as smaller cinemas around the country are facing a "cliff edge", according to the UK Cinema Association.

Tyneside Cinema in Newcastle is not only the last full-time independent cinema in the North East, it's also the UK's last surviving showreel theatre.

The cinema, which was founded in 1937, has struggled over the past few years due to the pandemic, and now, rising energy costs.

Andrew Simpson, director of Film Programming at Tyneside Cinema, told Sky News "the picture is really stark".

"We've seen a 300% rise in utility costs this year which creates an enormous hole in the budget of an organisation like ours, and we're still in a position where we're on a sort of about a 40% shortfall of audiences versus pre-pandemic."

"We have faced the possibility of closure in the past as venues like ours will do from time to time, that is definitely the most difficult period like that we've ever faced."

Mr Simpson added there is a "much wider crisis" at play across the industry, and lots of venues are facing similar struggles of "going to the wall in the next twelve months".

Tyneside Cinema holds a rich cultural history and has become integral within the community after being established 86 years ago.

It was founded by Dixon Scott, the great-uncle of Hollywood directors Sir Ridley Scott and Tony Scott.

Mr Simpson said it goes beyond what is on the big screen, and is a "community space", playing an "enormously vital role in the social and community life of the city".

At Tyneside Cinema, the staff have launched a fundraising campaign as it faces a threat to its survival.

These struggles are being faced by small cinemas across the country.

Last year, The Lighthouse in Wolverhampton and Edinburgh's Filmhouse shut their doors for good.

It's feared that others could follow suit.

According to the UK Cinema Association, between 2010-2020 the sector saw consistent growth, and the number of cinemas increased by 15%.

However, a reverse in this trend has been seen following the pandemic and rising utility costs.

Phil Clapp, chief executive of the UK Cinema Association, told Sky News: "I think all cinemas, and indeed all businesses, were grateful for the support the government provided when energy costs started to spike in spring of last year, and the continuation of that support through into the beginning of 2023 was hugely welcomed.

"Businesses like cinemas and others faced a cliff edge at the end of March when support finished.

"The sudden removal of that support, particularly for smaller operators who have less economies of scale, less capacity to deal with sudden change, was sufficient I think to provide a shock to smaller operators."

Mr Clapp added: "The loss of any cinema is not just really the loss of a place where people go to see film, although clearly that's one of their key purposes.

"It's also a community asset, it's a place where parent and baby screenings and silver screenings for older customers and accessible screens for disabled customers allow the community to mix and there are increasingly few of those places where that can happen.

"While the loss of a smaller operator may not be so great of an economic hit to the industry, I think the loss to the local community is much, much greater"

This summer is packed with plenty of much-anticipated releases, including the latest instalment of the Indiana Jones franchise, DC's The Flash and Barbie.

The cinemas are hoping these could help reverse the downwards trend that's been seen over the last few years.