Q3 2014-15 Scottish Insolvency Statistics – R3 comments
Commenting on the Scottish Insolvency Statistics Q3 2014-2015, Chairman of R3 in Scotland Tim Cooper says:
“The latest results are a continuation of the steady and prolonged decline in personal insolvencies that we have been seeing over the last number of years.
“It’s unclear as to how long this trend will continue: personal debt levels are slowly creeping up again following a post-financial crisis lull. This lull followed a surge in debt levels over the previous decade.”
“While the figures for this quarter are unsurprising the next round of results will be particularly interesting to see. There are many factors at play which may impact on personal debt levels including falling retail prices and fuel costs, and the possibility of rising household disposable income and wage inflation. If the dynamics of pre-2007 are anything to go by, that could lead to an increase in consumer debt.”
“Low interest rates and low inflation are helping some companies keep costs low and steer clear of insolvency. For businesses with significant expenditure on fuel costs, the current oil prices benefits them as much as the consumer.”
“The first half of the year will bring a series of headwinds to the UK and Scottish economy, including uncertainty over the General Election, the extent of a further devolution of tax powers, and the impact of Eurozone events, and these will create challenges as well as opportunities for our businesses.”
“While the drop in insolvencies since the last quarter is a welcome sign, this time of year can bring with it its own challenges. The first three months of the year can be a ‘make or break’ time for businesses that face the repercussions of a poor Christmas trading performance or were unable to keep up with the increased orders of the festive period, while others may uncover problems as the end of the financial year approaches.”