“While a fall in insolvencies is positive, operating conditions remain incredibly challenging,” said Michelle Elliot, restructuring partner at FRP in Glasgow. “With consumer confidence so weak, businesses are having to absorb significant cost rises in order to remain competitive.
“This is putting acute pressure on margins, and there are few signs of respite on the horizon – sticky inflation is likely to keep demand low, and yesterday’s decision to hold interest rates means borrowing costs are unlikely to drop any time soon. Uncertainty over the November Budget means fresh investment decisions also starting to be delayed.”
Across the UK there has been a pronounced long-term rise in compulsory…