Sponsored by
Public-sector cuts hit firms
THE number of Scottish companies in financial trouble jumped at the end of last year as public-sector cutbacks began to bite, figures released today suggest.
Firms are facing problems raising finance and getting paid by customers at the same time as their orders books are shrinking, according to the “Red Flag” report by Aim-quoted accountancy firm Begbies Traynor.
In Scotland, 382 businesses were in “critical” distress – facing winding up orders in the courts – during the three months to 31 December, compared with 330 in the previous quarter.
Ken Pattullo, group managing partner in Scotland for Begbies Traynor, warned: “We had expected the impact of public-sector cuts in Scotland to lag behind the rest of the UK due to the timings of the respective elections, but we now appear to be feeling the knock-on effect through the wider Scottish economy.
“We could continue to see this through the next two or three quarters. Just about every sector has now felt the effects of the recession and the squeeze on the economy.
“We are seeing critical distress at firms that have managed to stagger along through two tough trading years.”
Email to a friend
Print this page- Alistair Darling leads ‘No to independence’ fight over tea and biscuits
- Scottish independence: SNP flip-flops over Nato
- Scottish Independence: SNP ‘won’t be Yes campaign’s only voice’
- Today’s youth not fit to be employed, says car firm Arnold Clark
- Rangers takeover: Duff & Phelps threaten legal action against BBC
Looking for...
Featured advertisers
Jobs
Search for a job
Motors
Search for a car
Property
Search for a house
Weather for Edinburgh
Friday 25 May 2012
Today
Sunny
Temperature: 10 C to 21 C
Wind Speed: 14 mph
Wind direction: North east
Tomorrow
Sunny
Temperature: 9 C to 20 C
Wind Speed: 15 mph
Wind direction: North east
Your view
Please sign in to be able to comment on this story.