The data, provided by the Government’s Insolvency Service, also found accommodation and food service activities were one of the top six industries that experienced highest number of insolvencies in the 12 months to June 2025, along with construction, wholesale and retail, administrative and support, manufacturing and professional, scientific and technical activities.
According to consulting firm RSM UK, this was the third consecutive monthly rise in hospitality insolvencies.
Consumer confidence
RSM UK partner and head of leisure and hospitality Saxon Moseley said: “The continued uptick in insolvencies is a worrying trend, but one we have been forecasting for several months now.
“The leisure and hospitality sector has had a difficult year, with higher staff costs and rising inflation continuing to bare down on businesses already struggling with low consumer confidence.”
Moseley highlighted that operators are now in “survival mode”
“As a key creator of jobs, the sector is a corner stone for the UK economy, and therefore a delicate hospitality industry presents an economic headache for the Chancellor,” he said.
Business rates
“Taking steps to overhaul the business rates system, as well as supporting the industry to respond to recent tax increases would help alleviate pressure on operators, keep more businesses solvent, and in turn allow them to invest in jobs for the future,” Moseley added.
Overall the Government statistics revealed the number of registered company insolvencies in England and Wales was 2,081 in July 2025, similar to both June 2025 (2,053) and the same month in the previous year (2,078 in July 2024).
