David Alexander

Personal insolvencies, which include bankruptcies and protected trust deeds, totalled 1,673. This represents an 11.3% decrease compared to the same quarter in the previous year. Corporate insolvencies also saw a slight fall, dropping 2.3% from 301 to 294 over the same period.

Activity within statutory debt solutions also eased slightly. The number of Debt Payment Programmes approved under the Debt Arrangement Scheme decreased by 1.1% to 1,221, while granted applications for moratoria fell by 2.4% to 947.

The data also highlighted the impact of the revised fee structure for bankruptcy applications. Of the 442 debtor applications benefiting from this structure in the quarter, a significant 93.2% paid no fee.

David Alexander, head of debt recovery at Gilson Gray, said: “Although Scottish corporate insolvencies have reduced slightly compared with 12 months ago, the pattern of increasing figures post-Covid remains.

“Many companies will be feeling the pressure of increased National Insurance contributions, deferred tax payments, bounce-back loan repayments, and the ongoing impact of other pandemic-era borrowing. With those repayment deadlines now active and cash flow under strain, it is unsurprising to see more and more businesses left with no choice but to enter insolvency.

“Particularly in sectors such as hospitality, retail, and construction, we are seeing businesses struggling to cope with a combination of escalating costs and reduced consumer spending. And with geopolitical tensions and instability in global markets continuing for the foreseeable, there is still a threat of storms on the horizon.”