THE number of Scots entering insolvency solutions has held steady compared to a year ago, according to latest figures.
Statistics from the Accountant in Bankruptcy (AiB) show there were 2472 personal insolvencies, which include awards of bankruptcy and protected trust deeds, in the second quarter of 2017-18.
That is a rise of 12 – or 0.5 per cent – on the same quarter a year ago. The figure for the quarter up to September 30 is around 400 down on the previous quarter total of 2839.
Bankruptcies alone fell 2.3 per cent compared to a year ago, down from 1150 to 1124. Protected trust deeds recorded showed a 2.9 per cent rise on the same quarter in the previous year from 1310 to 1348.
Personal insolvencies in Scotland have more than halved since 2008-09. The number of approved debt payment programmes under the Scottish Government-backed Debt Arrangement Scheme totalled 662, compared with 663 a year ago.
Scottish Government Minister for Business, Innovation and Energy Paul Wheelhouse said: “In the midst of the economic headwinds arising from ongoing UK Government austerity policies and rising consumer price inflation caused by the falling value of sterling following the result of the Brexit referendum, it is heartening to see there is, as yet, no surge in numbers facing the strain of insolvency. There is no place for complacency, of course, given that the full impact of Brexit has yet to be felt, and I am under no illusion as to the challenges we face.
The number of Scottish businesses becoming insolvent or entering receivership also remained largely stable, with a rise of just nine from the second quarter of 2016-17 to the corresponding quarter this year.
Total corporate insolvencies rose 4.2 per cent from 216 to 225. The figure for Q2 of 2017-18 is made up of 160 compulsory liquidations and 65 creditor voluntary liquidations. No receiverships were recorded for the quarter. There were also 135 members’ voluntary liquidations, which is up from the 106 recorded in the same quarter for 2016-17.
The Minister added: “We are clearly aware of the challenging economic environment Scottish businesses operate in and the uncertainty they face due to Brexit. While there are tentative signs of improving conditions in the oil and gas sector, individual companies in the supply chain continue to face challenging circumstances.
“These figures showing a stable level of corporate insolvency, taken in the context of continued growth in GDP, demonstrate the resilience of the Scottish economy.”
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