Hospitality insolvencies flatlining as industry awaits upcoming Budget

By James Lawrence

Published: 19 November, 2025

New figures from The Insolvency Service show that company failures in the hospitality sector were essentially unchanged in September 2025 – and only slightly higher year-on-year – as operators await next week's Budget.

According to government data, there were 265 insolvencies in September – virtually flat compared to 262 in September 2024.

It also revealed that there were 3,370 insolvencies in the 12 months to the end of September 2025, making it the third largest sector (14% of all cases) for that period.

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Analysts have suggested that this relative stability may reflect businesses “hanging on” through the busy autumn and Christmas trading period in the hope of improving cashflow.

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.”

Mosely finished by emphasising that the “future of many hospitality businesses will be dependent on the upcoming Budget.”

However, if venues are hit with more tax rises, on top of April's rise in staff costs, “it will inevitably be the end of the road for some,” she added.

Company insolvency statistics are avaliable here.

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