Bankruptcy growth rate starts to slow

Published on Wednesday 14 October 2009 21:18

THE number of Scots being declared bankrupt is still rising but at a slower rate, according to an accountancy firm.

However, official figures due out next week are expected to show an actual drop in bankruptcies.

More than 6,500 personal insolvencies were reported between July and September, accountants at Baker Tilly said, an increase of 5 per cent on the previous quarter. But the growth rate is slowing, having been about 10 per cent in the previous two quarters.

Baker Tilly compiled its figures by analysing notices posted in the Edinburgh Gazette, the official UK government newspaper, in which insolvency details are printed.

The firm also said the number of firms that went into administration in the past three months had been slightly down on the previous quarter.

David Menzies, restructuring and recovery partner at Baker Tilly, said: "The fall in administrations does not indicate businesses are out of the woods yet.

"In a large number of cases, HMRC's business payment support scheme (which allows firms to spread tax payments] seems to be providing a life-belt for many organisations."

The Scottish Government's Accountant in Bankruptcy (AIB) agency said early indications for the quarter showed a fall in the number of bankruptcies in Scotland, down 6 per cent on the previous quarter and nearly 14 per cent year on year.

The AIB is due to publish its official figures next week. It said there was sometimes a delay or overlap between publication of notices in the Edinburgh Gazette and the official statistics.