Hospitality insolvencies fell sharply in August, as trade continued to be boosted by the UK’s hot weather and the men’s football World Cup. However, geopolitical uncertainty, government policy and upcoming legislative changes mean the sector’s recovery faces a number of headwinds.
The latest figures from the Insolvency Service show that there were a total of 233 insolvencies in the UK’s accommodation and food services sector during August 2026, down by 24 per cent from 306 in July 2026 and 12 per cent from 266 in August 2025.
Saxon Moseley, partner and Head of Leisure and Hospitality at RSM UK, said that consumer mood had been lifted by the UK weather, with numerous heatwaves over the summer, and the World Cup, delivering a significant boost to the hospitality sector.
Moseley continued, however: “While there are positive signs of growth in the sector, recovery remains fragile, so caution is needed to avoid derailing the progress made over the summer.”
According to Mosley, the sector is set to come under continuing pressure from geopolitical uncertainty, potential interest rate increases, upcoming legislative changes and shifting government policy.
He added that operators in the sector will be hoping October’s Autumn Budget provides clarity and support and doesn’t dent consumer confidence in the lead up to the crucial Christmas period.
Gordon Thomson, restructuring partner at RSM UK, also sounded a note of warning about the difficult trading conditions that the sector faces after a positive summer.
Improved summer trading has been credited with helping many hospitality businesses remain afloat, but Thomson cautioned that otherwise viable positions could be undermined by historical debts, making it critical for owners to seek restructuring advice in the event of disappointing autumn trading.
Government data also shows that, despite the August dip in insolvencies, the hospitality sector still accounts for a significant proportion of overall collapses.
In the 12 months to August 2026, there were 3,201 accommodation and food service company insolvencies, making the sector the third-largest for insolvencies over the period, behind construction and wholesale and retail trade and motor vehicle repair.
The sector’s positive August figures also build on a 15 per cent drop from 279 to 237 between May and June 2026, a significant improvement from the 307 insolvencies the industry recorded in June 2025.
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