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The number of businesses failing in Scotland last year dropped to lows not seen since the onset of the financial crash in 2008, new figures have suggested.

According to statistics gathered by accountancy group KPMG, there were 832 corporate insolvencies in Scotland in 2017, the least for nine years, when 803 were recorded.

The 2017 figure was down by 15 per cent on the previous year.

That included 749 liquidations, which tend to affect smaller businesses. Liquidations in 2017 were 16 per cent lower than in the previous year.

Administrations, which tend to involve larger organisations, fell by 14 per cent in 2017 to 83.

However, KPMG head of global restructuring Blair Nimmo noted there was an increase in insolvencies in the final quarter of 2017. Compared to the final three months of 2016, the number of businesses that failed increased by 14 per cent to 251.

During the final quarter, administrations were 38 per cent lower, but this was offset by a 25 per cent increase in liquidations.

“Although we saw a small rise in insolvencies in the quarter ended 2017 compared to the same period in 2016, this does not necessarily signal a fall in the fortunes of Scottish businesses,” Nimmo said.

“The figures must be viewed in the context of decreases over a sic and 12-month comparison, by 7 per cent and 15 per cent respectively.

“Indeed, annually, it is encouraging to see the number of business failures falling to an eight-year low, representing what are relatively normal attrition rates.”

But Nimmo added that other economic indicators are not so positive, while the “general direction of travel” in the Scottish economy remains uncertain.

Poor growth forecasts and low business birth rates are “cause for concern”, as is continuing uncertainty about the political and economic climate.

“From a sector perspective, we continue to see retail grabbing most of the headlines across the UK and to a lesser extent in Scotland were sadly, in Kilmarnock, we saw the collapse of James H Donald,” Nimmo added.

“Overall, however, rather than formal insolvency proceedings we continue to be busy primarily advising SMEs across Scotland on a variety of matters including raising new finance, preparing updated financials, negotiation with creditors, alongside various cost reduction and working capital initiatives.”