Challenging Hospitality Trading Sees Insolvencies Rise In March

Today’s company insolvency statistics show accommodation and food services insolvencies rose 4% month-on-month from 271 in February 2025 to 282 in March 2025. However, insolvencies were down 10% from 3,770 in the 12 months to March 2024 to 3,407 in the 12 months to March 2025.

Saxon Moseley, partner and head of leisure and hospitality at leading audit, tax and consulting firm RSM UK, said:
“Trading in the hospitality sector was particularly challenging in Q1, with sales down 0.6% in March according to the CGA RSM Hospitality Business Tracker, so it’s understandable that we’d see an uptick in insolvencies. However, insolvencies are still down on last year, demonstrating the resilience of many operators. The concern is that there will be more insolvencies to come following the rise in staff costs in April, combined with the wave of uncertainty surrounding tariffs.

“With the increase in employers’ NI set out last October, most operators should have factored in the cost impact ahead of April. As a result, we suspect some businesses will have tried to maximise trading up to the end of March before the additional cost pressures started to bite.

“Consumer confidence remains fragile, and with inflation expected to rise throughout this year, this may well spook consumers even further. The hope is that the good weather and strong wage growth will be enough to entice people to get out and spend. Operators must keep a close eye on their cashflow, but there’s only so much pressure they can withstand. It’s clear that support from the government is urgently needed to avoid more site closures.”