The number of Scottish businesses failing has fallen to an eight-year low, according to new figures from professional services firm KPMG. There were 832 corporate insolvencies in 2017, a 15% drop on the previous year and the lowest since 2008.
However, insolvencies climbed by 14% in the last three months of the year compared with the same period in 2016. Over the whole of 2017, administrations, which tend to affect larger organisations, fell by 14% to 83, while liquidations, typically involving smaller firms, fell by 16% to 749.
Blair Nimmo, global head of restructuring at KPMG, said: 'Annually it is encouraging to see the number of business failures falling to an eight-year low, representing what are relatively normal attrition rates. Nevertheless, other economic indicators are not so positive in a UK context, and the general direction of travel in the Scottish economy remains uncertain.'
He added: 'Coupled with comparatively poor GDP forecasts and a low rate of business birth rates, there are some causes for concern. A continuing uncertain political and economic climate, whether in Scotland, or anywhere else in the UK, means businesses remain cautious, and I do not see this changing in the immediate future.'
