What's really happening to London's nightlife?

Hi! This morning I read an article about more restrictions related to the closing time of venues in Soho, something that I find really weird considering that the area is already struggling. I work in hospitality and I think the situation is a lot worse than people outside the industry realize. It's not like "It's just a moment, it will be better" but more for many places "If a miracle happens maybe the place won't close in a couple months". Don't consider only the councils, but the rent situation as well that is totally out of control.

I noticed that local councils are extremely aggressive with pubs and venues in general, in a way that often goes far over the simple compromise between the needs of the residents and the ones of the venues. Why is this really happening? I mean, London is basically the temple of capitalism, all of these choices they are taking related to hospitality are killing a once profitable industry, without considering the disappearance of nighlife in many areas of London.

Is this something political? A change related to people in power? I would really like to understand what's the positive side of erasing what is probably the most known and important part of the entertainment in London.