Survey reveals north-south stability divide

THE north of Scotland's smaller, more mature businesses are looking better prepared than those in the south of the country to weather difficulties in the economy and public sector cuts.

Data due to be released this week by listed accountancy firm RSM Tenon will show that the number of firms in "imminent danger" of becoming insolvent in the south of Scotland - which includes the Central Belt - stood at 9,391, or 16 per cent of all firms in the survey. In the north, the figure was just 12 per cent, or 3,077.

And whereas in the north the proportion was down slightly year-on-year, in the south those at risk rose by 4 per cent.

Tom MacLennan, a director of RSM in Scotland, said the north's agriculture and fisheries enterprises were traditionally stable, while the tourism sector would be in a strong position as it entered the summer season.

He added that businesses in the north were typically older, with strong balance sheets that meant they could withstand lean periods. But he added: "Overall, there's a slight positive trend over the last quarter."

A recent study by business information firm Experian ranked Scottish areas in terms of their economic resilience, taking into account likely public sector cutbacks.

The list was topped by Aberdeenshire, followed by the Orkney Islands. North Ayrshire and West Dumbarton were the least resilient.

Clare Reid, strategic development director at Experian in Scotland, said: "The areas which are the most resilient tend to be those with a favourable mix of factors, including a low relative dependence on public sector jobs, greater industrial diversity, a growing and adaptive business base and a highly skilled workforce."