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The number of businesses going bust in Scotland increased by more than 45% in the first half of 2019, according to new analysis by KPMG.

The accountancy firm research showed the number of companies entering administration, receivership and liquidation hit 698 - up from 479 in the previous six months.

Of these cases 661 involved a company liquidation, while there were 37 administration and receivership appointments, 221 cases were HMRC-led.

While continuing Brexit and political uncertainty has created challenging conditions for the business community, wider economic volatility is being blamed for the rise.

The most high profile casualties in recent months have included a number of retailers.

But KPMG said it was not all gloom and doom because the number of insolvencies in the quarter ending 30 June was almost identical to last year.

The firm also said that while the number of administrations - which normally relate to larger businesses- is also up, it is still at a relatively low level when compared to historic data.

Blair Nimmo, head of restructuring for KPMG, said: “While there is clearly a trend towards an increase in corporate insolvencies, there are some signs of resilience.

“The last quarter has remained far more static, and a number of industries are taking proactive measures to put themselves on a more stable financial footing, including retailers, hoping CVA proposals could head off the prospect of administration.

“The ongoing Brexit discussions and change of Prime Minister and Cabinet have undoubtedly create a climate of uncertainty, but there are wider challenges at play, creating a toxic mix of issues for businesses going through a period of distress.

“The best approach for any business in Scotland right now is to maintain a fiscally cautious approach, ensuring you maximise reserves, proactively and regularly review contingency plans and – ultimately – plan for any worst case scenarios.

“A number of challenges could be on the horizon, but with a resilient, focused approach, including taking appropriate advice at an early stage, Scotland’s business community can continue to grow sustainably in the long-term.”