The report, produced by law firm Shakespeare Martineau on behalf of the NTIA, showed a “significant increase” in businesses going into administration, underscoring the challenges faced by firms over the past year.
According to the figures, there were 193 administrations in both industries during this period, accounting for 11% of all reports, compared with 74 between April 2022 and March 2023, representing 5% of all administrations.
On a monthly basis, the numbers peaked in October 2023, with 39 administrations, and January 2024, when there were 20 administrations, demonstrating the “volatile nature” of the industry.
Unstable climates
NTIA CEO Michael Kill 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.
“As industries grapple with escalating expenses, the recent dip in inflation only marginally alleviated the cost burden.”
In addition, the hospitality sector was the fifth worst-hit sector in the first quarter of this year, according to the data, following retail, manufacturing, real estate and construction.
Furthermore, the first quarter of 2023 also saw a notable rise in administrations.
January-March 2023 administrations accounted for 9% of all reports during that time frame, a “stark contrast” to administrations recorded in January-March 2022, comprising only 4% of all administrations.
Financial relief
This comes as previous figures from the NTIA estimated 31% of all nightclubs closed their doors for good between March 2020 and December 2023.
Meanwhile data from Price Bailey earlier this year showed pub closures surged to their highest total level for more than a decade in 2023.
The NTIA said the statistics highlighted the “urgent need for support and intervention” to safeguard the future of businesses within the hospitality industry.
Kill added: “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."
