It decreased by 29% year-on-year.
In August 2024, insolvencies in the accommodation and food service sector dropped by 16% month-on-month, totaling 270 compared to 323. This represents a 29% decline from the 380 insolvencies recorded year-on-year, as per the Company Insolvency Statistics.
Saxon Moseley, partner and head of leisure and hospitality at audit, tax, and consulting firm RSM UK, noted, “Hospitality businesses have seen slow but steady revenue growth during the summer, while reductions in staff vacancies, food costs, and service inflation indicate a relief from the margin pressures that have heavily burdened operators.”
Nevertheless, the sector saw a 9% increase in insolvencies, rising to 3,712 in August 2024 from 3,419 in August 2023.
In September 2024, there were 1,973 registered company insolvencies in England and Wales, marking a 2% increase from 1,943 in August 2024, but a 7% decrease from 2,130 in September 2023.
The September 2024 company insolvencies comprised 226 compulsory liquidations, 1,575 creditors’ voluntary liquidations (CVLs), 155 administrations, and 17 company voluntary arrangements (CVAs).
Moseley expressed concerns, stating, “There are rising worries about how the budget will affect consumer confidence and the cost of staffing, which could negatively impact the sector.”
He added, “As the industry strives to recover after a challenging couple of years, it is crucial for the government to proceed cautiously to protect its delicate recovery.”
