RESTRUCTURING by oil and gas businesses might be bearing fruit and supporting north-east companies dependent on this sector, given the fall in Scottish corporate failures in the year to March, insolvency professionals trade body R3 says.

Official figures published yesterday by the Accountant in Bankruptcy showed there were 840 corporate insolvencies in Scotland in the year to March, down by seven per cent from 903 in 2015/16.

The 2016/17 figure included 558 compulsory liquidations. There were also 277 creditors’ voluntary liquidations, and five receiverships in the year to March.

In the January to March quarter, the number of Scottish corporate insolvencies, at 155, was down by 32.6 per cent on the same period of last year.

Tim Cooper, who chairs R3 in Scotland, said: “Despite tougher economic conditions for Scottish businesses over the last 12 months, it’s encouraging to see firms are proving resilient.

“The process of restructuring undertaken by many of Scotland’s oil and gas businesses over 2016 may be bearing fruit, helping related companies – especially in the north-east – to stay afloat.”

Contemplating the economic outlook, Mr Cooper added: “Consumer confidence held up remarkably well across 2016, which will have boosted many companies’ results. Whether this confidence will continue is trickier to predict but, with inflation rising, the willingness of the Scottish public to carry on spending may shrink in 2017.”

Inflation has surged amid sterling weakness triggered by the UK’s vote last June to leave the European Union.