Hospitality Insolvencies Fall as Hot Weather Stimulates Demand

Today’s company insolvency statistics show accommodation and food services insolvencies fell 9% month-on-month from 301 in April 2026 to 274 in May 2026, and were also down compared to the same month in 2025 (296).

Saxon Moseley, partner and head of leisure and hospitality at leading audit, tax and consulting firm RSM UK, said: “The latest insolvency figures suggest the industry appears to have reached a period of stability after a few years of heavy losses. Operators are managing to hang on, helped by the hot weather and May bank holiday which gave pubs a welcome boost. The arrival of the World Cup should help to stimulate further demand as fans get together to cheer on their country.

“If the US-Iran deal holds up, combined with Andy Burnham’s recent byelection victory, this could set the stage for a gradual recovery in the industry, particularly if the VAT cut for hospitality businesses is prioritised. In addition, provided oil and fuel prices continue to come down, reducing the risk of interest rate hikes, this should offer a slightly rosier outlook for consumer spending this year.”