Budget support needed as hospitality insolvencies continue to creep up
Today’s company insolvency statistics show accommodation and food services insolvencies rose again 4% from 296 in May 2025 to 307 in June 2025, reaching the highest monthly figure since November 2024. However, annual insolvencies in the sector were down 5% from 323 in June 2024.
Saxon Moseley, partner and head of leisure and hospitality at leading audit, tax and consulting firm RSM UK, said: “We’ve not hit the heights of last year’s spike, but insolvencies continue to creep up which is a worrying, but not unexpected trend. The hospitality industry has been acutely hit with higher staff costs and rising inflation, and when you overlay subdued sales, continuing to operate has become unviable for some.
“With many operators still in survival mode, the industry is struggling and as a key job creator, particularly for younger workers, a fragile hospitality industry presents an economic headache for the UK. Taking steps to overhaul the business rates system, plus supporting the industry to respond to recent tax increases would allow operators to not only weather the storm, but invest in jobs for the future.”