Professional services’ fear of business failure

Nearly a third of Scotland’s professional services firms are considered to be at higher than normal risk of insolvency, according to new research.

Insolvency and restructuring trade body R3 reported that 30.7% of businesses in the sector are considered at higher than normal risk of entering insolvency in the next year, down 2.1% from last month.

This sector displays similar levels across the UK (32.6%). London has the highest proportion at heightened risk (36.1%).

Tim Cooper, chairman of R3 in Scotland, said: “The professional services sector was among those most vocally concerned about the prospect of the UK exiting the EU.

“It’s perhaps unsurprising to see that there are relatively high rates of businesses displaying instability.

“The slight fall in the proportion of those at risk this month, however, is to be welcomed…”

He said fears about the economic impact of the Brexit vote could slow the flow of work for professional services.