Scottish business insolvencies decreased by 5% in Q2

Latest data from Accountant in Bankruptcy has found that business insolvencies in Scotland decreased by 5% to 298 in 2025-26 Quarter 2 (Q2) from 313 in 2024-25 Q2.

Business insolvency numbers in Scotland for 2025-2026 Q2 decreased by 10% compared to last quarter.

Commenting on the latest insolvency stats, Emma Widdowson, chair of R3 in Scotland and legal director at Addleshaw Goddard, said “Whilst it’s good to see a slight overall decrease in today’s corporate and personal insolvency figures from Accountant in Bankruptcy (AiB), the executive agency of the Scottish Government, there has been an increase in creditor enforcement. Today’s figures are being published against a backdrop of ongoing uncertainty which continues to dominate the business landscape. The UK November budget is weighing heavily on businesses and individuals alike and changes are likely to be reflected in the Scottish budget, which has been delayed until 13 January 2026.

“Speculation around potential changes to business taxation are creating hesitation among directors and investors. In an already difficult trading environment, this uncertainty is making it harder for businesses to plan for the future, particularly when it comes to recruitment, investment and expansion.
“Meanwhile, with subdued consumer demand and concerns about tax and regulatory burdens, some businesses are fighting hard to stay afloat. These pressures are reflected in business insights data from the Office for National Statistics, which revealed that around one in six (17%) trading businesses reported having no cash reserves in late September 2025 – the highest proportion since the question was introduced in June 2020.

“A lack of cash reserves leaves businesses vulnerable to even small financial shocks, such as a bad debt or loss of a customer, challenges which they might previously have been able to weather and could lead to insolvencies.

“Scotland’s labour market is also showing signs of strain with the number of people in work falling by 18,000 between June and August 2025, reflecting the broader impact of economic challenges.”