Insolvency Service statistics show the total number of company insolvencies was higher in 2016 than the previous year, primarily because of 1,796 connected personal service companies entering liquidation on the same date following changes to claimable expenses rules. Taken this into account, the underlying number of company insolvencies was broadly unchanged in 2016 compared with 2015.

However, the year-end liquidation rate increased for the first time since 2009. The estimated liquidation rate in 2016 was 0.47% of active companies, compared with 0.44% in 2015.

While individual insolvencies rose in 2016, this was the first increase since 2010 and the total was still at the second-lowest level in 11 years. The increase in 2016 was driven primarily by an increase in individual voluntary arrangements, which returned to the level seen from 2009 to 2014.

Bankruptcies fell in 2016, but debt relief orders rose because of a change to eligibility criteria.

The statistics show one in 506 adults (0.20% of the adult population) became insolvent in 2016, up from 0.18% in 2015.

Sarah Albon, Insolvency Service chief executive, said: ‘The underlying trend for company insolvencies was static in 2016. The overall increase for the full year is attributable to a one-off liquidation of a large number of personal service companies following the closure of tax loophole making them unviable.’

Statistics for the last quarter of 2016 show the underlying number of company insolvencies rose compared with the previous quarter, and with Q3 2015, driven by an increase in compulsory liquidations. Individual insolvencies decreased compared with the previous quarter but were higher than in Q3 2015, driven by individual voluntary arrangements and debtor application bankruptcies.

Last quarter’s statistics from AiB show the number of people accessing Scottish statutory debt solutions has remained steady in the third quarter of 2016-17.

Figures for bankruptcies, protected trust deeds and debt payment programmes under the Scottish government-backed debt arrangement scheme (DAS) have stayed largely stable, showing a 1.9% increase from the previous quarter to 3,145.

DAS allows debtors to pay their debts in full without facing insolvency. By contrast, total personal insolvencies, which include both bankruptcies and protected trust deeds, totalled 2,616 for the third quarter of the year up to 31 December 2016, a 7.9% increase on the previous quarter.

AiB data shows personal insolvencies in Scotland have more than halved since 2008-09, and the numbers fell significantly in early 2015-16, the first months after the new legislation on DAS came into force.

Paul Wheelhouse, Scottish minister for business, energy and innovation said: ‘While one person experiencing the distress and anxiety of insolvency is one too many, numbers appear to be settling down at a lower level than they have been in previous years.’

The number of Scottish businesses becoming insolvent or entering receivership fell from 218 in the second quarter of 2016-17 to 209 in the current quarter. The figure for the quarter is made up of 137 compulsory liquidations and 72 creditor voluntary liquidations. No receiverships were recorded for the quarter. There were also 151 members' voluntary liquidations, which is up from the 106 recorded in the previous quarter. 

Wheelhouse said: ‘It is heartening to see fewer Scottish companies shutting their doors this quarter - although we are acutely aware of the challenging economic environment that our businesses continue to operate in.’

Insolvency Service statistics are here.

Scotland’s insolvency statistics are here.