Insolvencies in the accommodation and food services sector rose 4% from May 2025 to June 2025, totaling 307, marking the highest monthly figure since November 2024. Despite this spike, annual insolvencies decreased by 5% compared to June 2024. Saxon Moseley from RSM UK noted that the hospitality industry is grappling with high staff costs, rising inflation, and subdued sales, leading some operators into survival mode. The fragility of the sector poses risks for job creation in the UK, particularly among younger workers. He advocates for reforms in business rates and support against tax hikes to help businesses thrive.
Today's company insolvency statistics reveal that accommodation and food services insolvencies increased by 4% from May to June 2025, reaching 307, the highest since November 2024. Annual insolvencies in the sector remain 5% lower than a year ago.
Saxon Moseley, partner and head of leisure and hospitality at RSM UK, highlighted that while insolvencies have not reached last year's spike, there is a concerning trend of increasing insolvencies in the hospitality sector.
Moseley noted that the hospitality industry faces challenges from higher staff costs and inflation, paired with subdued sales, making operation unviable for some businesses, causing concern for job creation.
He emphasized that supporting the hospitality sector through business rates reform and addressing recent tax hikes is essential; these measures could enable operators to survive and invest in future jobs.
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