The number of hospitality businesses entering insolvency has risen for the third consecutive month, according to government data.

There were 327 food service and accommodation company insolvencies in July this year, the highest monthly figure since November 2024, up from 306 in June.

The number of insolvencies has also risen year-on-year from 323 in July 2024.

Saxon Moseley, partner and head of leisure and hospitality at RSM UK, said the figures showed a “worrying trend” that had been forecast for several months. He commented:

“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.

Many 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.”

Moseley echoed trade bodies in calling for Rachel Reeves to introduce measures to ease the burden on the hospitality industry in the Autumn Statement on 26 November 2025. And added:

“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.”

UKHospitality has warned the industry is on track to have lost 111,000 jobs in just over a year by the end of November due to the impact of tax rises announced in the 2024 Autumn Statement.

Chair Kate Nicholls said restaurants, hotels and pubs had been forced to cut jobs, raise prices and reduce investment to make ends meet. She added:

“We stand ready to work together on solutions that can reverse the damage already done and help hospitality thrive, not just survive.”