Latest quarterly insolvency statistics for Scotland – Azets’ response

• Latest figures from the Accountant in Bankruptcy (AiB) show there were 375 corporate insolvencies registered in Scotland in the first quarter of 2026, an increase of 27.6% on the same period last year. The number of compulsory liquidations rose to 169 from 127 while creditors’ voluntary liquidations increased by 23.4%. There were 199 members’ voluntary liquidations compared to 128, an increase of 55.5%.  

Blair Milne, Glasgow-based corporate insolvency partner at international accountancy and business advisory group Azets (pictured), said: “The trading climate remains tough and it is clear the conflict in the Gulf is already taking a toll on cashflow and balance sheets just as it is on inflation. Firms who were already struggling to navigate a turbulent operating environment, including for retailers a poor ‘golden quarter’ in the run-up to Christmas, have seen a tipping point due to increased cost pressures. Chief among these are new business rates and the changes to national minimum wage taking effect this month. Coupled with the geopolitical turmoil caused by the war and the lingering uncertainty over global tariffs, it’s no surprise we’re seeing an impact.   

“The longer the war carries on, the more it will hit margins, access to finance and affordability of funding. As consumers face war-related cost increases and hikes in a series of taxes and bills at a time when money is tight, they are likely to cut back on spending even further which will be another blow for companies, supply chains and the economy at a time when everyone badly needs a boost.

“We anticipate an increasing number of directors will seek advice about their finances as they fear they will not be able to survive the economic aftershocks of the war. And while creditors remain willing to turn to the courts to secure payment of debts, it’s likely demand for insolvency support will increase in the coming months.

“From a sectoral perspective, while retailers and hospitality businesses will have benefited from the Easter Bank Holiday, the reality is that no one is sure whether rising volumes are driven by inflation or sales, and consumer caution around spending is increasingly likely.

“Construction firms are also suffering as the Iran conflict has increased costs and hit client confidence and willingness to commission work, while February’s poor weather has hit live and planned projects, which will affect firms across the supply chain. 

“And in the car sector, the public’s growing appetite for electric vehicles is hitting those across the supply chain whose businesses involve traditional cars, with sales of battery and hybrid electric vehicles coming at the expense of those that run on diesel or petrol.

“The positive in this is that the SME community remains resilient, with clients aware of the importance of taking decisive action at the signs of distress and being so close to the coalface they can see any issues that arise as early as possible. 

“In the current climate, seeking advice as soon as your business appears distressed is the best step you can take. It gives you more options to improve your situation and more time to take a decision about your next step. Lengthening creditor days, rising stock or nervousness about paying staff, suppliers or taxes are signs something is starting go wrong, and that is the time to seek advice from a specialist.”

Azets is a UK top 10 accountancy and business advisory firm, with offices in Aberdeen, Ayr, Edinburgh, Glasgow, Inverness and Perth.