Scotland business

KPMG reports eight-year low in Scottish business failures

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The number of Scottish businesses failures has fallen to an eight-year low, according to new figures.

Professional services firm KPMG found there were 832 corporate insolvencies in 2017 - a 15% drop on the previous year and the lowest since 2008.

Insolvencies, however, 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.

Meanwhile, liquidations - which typically involve 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.

"Coupled with comparatively poor GDP forecasts and a low rate of business birth rates, there are some causes for concern."

He added: "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."

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