Hospitality Insolvencies Flat as Businesses Hold On For Budget Lifeline

Company insolvency statistics show accommodation and food services insolvencies were flat month-on-month at 265 in September 2025, and only up slightly from 262 in September 2024.

Saxon Moseley, partner and head of leisure and hospitality at leading audit, tax and consulting firm RSM UK, said: “The flattening out of hospitality insolvencies suggests businesses are holding on to see through trade during the festive season. After a prolonged period of disappointing sales, many are hoping the Christmas period delivers a much-needed boost, so they can build up their depleted cash reserves.

“Consumer demand remains subdued for the most part, with pubs being the main beneficiaries of a “flight to value” by households. Consumers still want to socialise, but are doing so in the most cost-effective way. The risk is that the fear of the unknown of what will be announced in the budget causes them to stop spending completely, which would be a further setback for the industry.

“The future of many hospitality businesses will be dependent on the upcoming budget. If hit with more tax hikes, on top of April’s rise in staff costs, it will inevitably be the end of the road for some. But if offered targeted support and an injection of investment, this will provide a lifeline for many businesses at the heart of the UK economy.

“With some operators taking a “wait and see” approach in the lead up to the budget, standing completely still could have a negative knock-on impact. Understandably it’s difficult to make investment decisions until businesses get more certainty. However, operators must focus on conserving cash, maintaining the customer experience and cost cutting, including renegotiating prices with suppliers to get the best deal possible.”