"Today's company insolvency statistics show accommodation and food services insolvencies rose again, this time by 5% (up on the 4% rise last month) from 306 in June 2025 to 327 in July 2025, equalling the highest monthly figure since November 2024. Year-on-year insolvencies were also up from 323 in July 2024. It also represented the third consecutive monthly rise - a milestone not surpassed since prior to the current data-set's starting point in January 2022."
"The continued uptick in insolvencies is a worrying trend, but one we have been forecasting for several months now. 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."
Accommodation and food services insolvencies rose 5% from 306 in June 2025 to 327 in July 2025, equalling the highest monthly figure since November 2024. Year-on-year insolvencies rose from 323 in July 2024. July represented the third consecutive monthly rise, a milestone not surpassed since before January 2022. The leisure and hospitality sector has faced a difficult year, with higher staff costs and rising inflation burdening businesses and low consumer confidence weakening demand. Many operators are now in survival mode. Overhauling the business rates system and supporting responses to recent tax increases could alleviate pressure, keep more businesses solvent, and enable investment in jobs.
Read at London Business News | Londonlovesbusiness.com
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