
Business insolvency numbers (liquidations and receiverships) in Scotland for Q3 2024-2025 decreased by 2.4% compared with Q3 2023-2024, to a total of 285 according to latest Accountant in Bankruptcy data.
Business insolvencies (liquidations and receiverships) decreased by 8.9% when compared with the previous quarter’s total of 313 (July-September 2024).
Commenting on the Scottish insolvency statistics, Richard Bathgate, Chair of insolvency and restructuring trade body R3 in Scotland, and a Restructuring Partner at Johnston Carmichael in Aberdeen, said “While corporate insolvency levels in Scotland have fallen compared to last quarter and last month, the make-up of the figures has changed significantly and suggests that the Scottish insolvency landscape is very different to how it was three and 12 months ago. This quarter’s figures have largely been driven by a sharp increase in the number of solvent firms being wound up and by a rise in creditors turning to winding up orders to chase the debts they are owed.
“Member Voluntary Liquidations (MVL) have increased over the last three months to the highest level since the last quarter of the 2020-21 financial year. This suggests that directors of solvent firms are choosing to wind up their companies, perhaps ahead of the Employers’ National Insurance and National Minimum Wage rises being introduced in April, which we know will be a financial blow for many businesses.
“The rise in compulsory liquidations suggests that over the last three months creditors have become more willing to pursue the debts they are owed, and this is likely to be in an attempt to help manage their own outgoings and meet their own payment deadlines as businesses across the economy feel the pinch of rising costs and a customer base that is becoming wary of spending on anything that isn’t essential.
“Looking ahead to this year, Scottish businesses have entered 2025 facing a mix of challenges and opportunities. While economic conditions have shown signs of recovery compared to the past two years, rising costs continue to put pressure on companies across the board.
“Scotland’s retailers saw a slight boost over the festive period, with sales edging up compared to December 2023. While Black Friday and Christmas spending brought some wins, the crucial golden quarter remained flat, a clear sign that household budgets are still stretched, and consumers are finding ways to cut back wherever they can.
“Business confidence is slipping as many firms brace themselves for the impact of the Budget. While some positive measures were announced, the rise in minimum wage presents a fresh challenge, particularly for businesses in sectors like hospitality and retail. Already operating on tight margins, these businesses face higher labour costs at a time when they can least afford it and could push some to the brink.
“The increase in employer NIC is another significant concern for businesses, particularly in sectors with lower-paid staff. After years of price increases, it will be difficult to pass on these additional costs to customers, and we may see businesses forced to make tough decisions, choosing to scale back or reduce staff numbers.”