Today’s company insolvency statistics show accommodation and food services insolvencies rose 6% from 277 in April 2025 to 295 in May 2025, reaching the highest monthly figure since November 2024. Insolvencies in the sector were also up 4% from 285 in May 2024.

Saxon Moseley, partner and head of leisure and hospitality at leading audit, tax and consulting firm RSM UK, said: “Today’s figures show the cost pressures and challenges faced by the hospitality industry are really starting to bite. Higher staff costs and rising inflation, combined with subdued consumer spending, means some operators are simply running out of runway. Many have reached their limit in passing on costs to customers and are currently in survival mode.

“The rise in insolvencies is one of many warning signs that the industry is struggling, alongside the reduction in payrolled employees and sluggish trade, so the government would do well to take notice before it’s too late. Operators want to see an overhaul of the business rates system that offers a meaningful reduction in rates to create a more level playing field. Plus, some form of reversal in the Employers’ National Insurance increase, such as upping the threshold at which it becomes payable, would create significant savings for hospitality businesses and signal support for the sector. While nervousness among consumers remains a concern, some form of government assistance would help to take some of the pressure off.”

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