Business failures fall to lowest level since 2008

The number of Scottish firms going under has fallen to the lowest level since 2008, figures out yesterday revealed.

Statistics compiled by KMPG found the number of corporate insolvencies during 2017 fell 15 per cent to 832, the lowest since the 803 seen nine years ago. However, the final quarter of 2017 saw a 14 per cent increase in insolvencies compared to the same period in 2016.

Administrations, which typi- cally affect larger firms, fell by 14 per cent to 83 during the year. Liquidations, which tend to affect smaller businesses, fell by 16 per cent to 749.

Blair Nimmo, global head of restructuring at KPMG, said although the annual reduction in failures was encouraging he cautioned there are some causes for concern for businesses.

“A continuing uncertain political and economic climate means businesses remain cautious, and I do not see this changing in the immediate future,” he said.