Hospitality insolvencies down 9% in May

By Hamish Graham

Published: 22 June, 2026

The most recent company insolvency statistics can reveal that in May month on month hospitality insolvencies were down 9%, following a difficult start to the year for the sector.

In May 2026 insolvencies stood at 274 compared to April when they reached 301. There was also a fall year on year when comparing to May last year, when there were 296 such cases.

This slight reprieve follows a year which began with the hospitality sector seeing a rising number of companies unable to pay their debts. Insolvencies rose 22% month on month in February 2026 to 270, remaining stubbornly high in March at 268 and increased once again in April to 301.

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Charting back to the second half of 2025, it saw a steady decrease in hospitality insolvencies, from its 2025 peak in July of 327 to its lowest point in December of 205.

Reflecting on the most recent statistics, Saxon Moseley, partner and head of leisure at consulting firm RSM UK believes the sector “appears to have reached a period of stability after a few years of heavy losses”.

He continued: “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.”

In light of Prime Minister Keir Starmer’s resignation announcement today (22 June), there will be a renewed focus on likely successor Andy Burnham’s hospitality policy agenda.

He has gained some praise within the industry for some of his proposals, including reducing VAT for hospitality businesses from 20% to 10%; cutting business rates by a further 20% for pubs and music venues; and reviewing NIC increases.

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