R3<\/a> and partner at Addleshaw Goddard LLP, said.<\/p>\n\u201cThis upward trend stands in contrast to England and Wales, where corporate insolvency numbers increased only slightly on the quarter and fell year-on-year.<\/p>\n
\u201cThe more significant rise and overall upward trend in Scotland has been driven largely by a significant increase in Compulsory Liquidations, which have reached their highest level in six years, a high proportion of which are driven by HMRC, indicating a more robust approach to tax debt collection and enforcement, and other creditors adopting a similar and more active approach through the courts.\u201d<\/p>\n
Voluntary liquidations from creditors have dipped in the previous quarter and the same period in 2024.<\/p>\n
\u201cThis all paints a picture in the Scottish economy of businesses struggling with liquidity to pay creditors as they fall due, with creditors including HMRC taking proactive court action to enforce payment or bring businesses to a close and prevent further losses,\u201d Cooper commented.<\/p>\n
Recommended<\/p>\n
\u201cFrom a voluntary liquidation perspective, there may be hesitation among directors to take decisive steps in the current climate, or that they are able to find other avenues towards rescue and recovery including creditor support and forbearance which avoids an insolvency or otherwise enables a solvent closure. That said, Members\u2019 Voluntary Liquidations remain above last year\u2019s level but have fallen from the heightened numbers seen in late 2024 and early 2025, when many directors accelerated closures to benefit from the lower Business Asset Disposal Relief rates ahead of planned tax increases.<\/p>\n
\u201cThere are indications that momentum in Scotland\u2019s economy is stalling, and these latest figures indicate more businesses in Scotland are paying the price. Amid high operating costs, low confidence, and persistent inflation, many firms are facing tough choices around whether to keep trading, let alone grow.<\/p>\n
\u201cRising costs from the National Minimum Wage and employers\u2019 National Insurance contributions at the start of this quarter, combined with concerns over potential autumn tax hikes and tariffs, are clouding decision-making and forcing many firms into a holding pattern as they wait for greater certainty.\u201d<\/p>\n
\n\tRelated<\/p>\n","protected":false},"excerpt":{"rendered":"The first quarter of 2025-2026 (April to June) saw corporate insolvencies in Scotland rise by 17.3% year-on-year, totalling…\n","protected":false},"author":2,"featured_media":285751,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5009],"tags":[748,51,106855,4884,40888,106856,712,16,15],"class_list":{"0":"post-285750","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-scotland","8":"tag-britain","9":"tag-business","10":"tag-corporate-insolvencies","11":"tag-great-britain","12":"tag-insolvencies","13":"tag-insolvency","14":"tag-scotland","15":"tag-uk","16":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114903739541418966","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/285750","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=285750"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/285750\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/285751"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=285750"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=285750"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=285750"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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