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Number of hospitality firms in administration double
The number of UK hospitality businesses in administration more than doubled in the year to March 2024, according to new data.
A recent report produced by law firm Shakespeare Martineau for trade body the Night Time Industries Association (NTIA) revealed that there were 193 administrations in the hospitality industry between April 2023 and March 2024. This accounted for 11% of all administrations and was more than double the number seen in the 12 months to March 2023 (74 administrations).
Between January 2023 and March 2023, hospitality administrations accounted for 9% of all administrations. However, this was higher when compared with the same period in 2022, when hospitality accounted for only 4% of all administrations.
In the first quarter of 2024, hospitality emerged as the fifth worst-hit sector, following retail, manufacturing, real estate, and construction. During the first three months of this year, there were 36 hospitality businesses in administration.
The report also noted peaks in the number of hospitality administrations across 2023 and 2024 with 39 administrations in October last year and 20 in January this year.
The NTIA said the figures show the need for urgent support to protect the future of the hospitality sector.
Michael Kill, CEO of NTIA, said: “Navigating through highly unstable political climates, we must acknowledge the deteriorating conditions at the coalface of the hospitality and night-time economy sectors and, more importantly, the true human impact on people’s livelihoods.
“With industries grappling with escalating expenses, the recent dip in inflation only marginally alleviated the cost burden. It’s imperative that we intensify our efforts to urge the government and the chancellor to bolster the industry through fiscal measures, notably by implementing a VAT cut, which would provide much-needed financial relief for the entire nation.”
A cross-party group of UK members of Parliament recently launched an inquiry to address staff shortages in the hospitality industry.