21 October 2011
Scotland has seen a dramatic 46% rise in corporate insolvencies in the last year which is a sign of a faltering Scottish economy, Labour warned today.
A smaller rise in personal insolvencies – bankruptcies, protected trust deeds and other forms of debt repayment programmes – were also recorded.
Speaking about corporate insolvencies, Labour’s deputy finance spokesperson Rhoda Grant MSP said,
"This shows the SNP’s economic plan simply isn’t working.
"Coming at a time of persistent stagnation, lower economic performance than the rest of the UK and rising unemployment, these figures are another sign that the Scottish economy needs a change of course.
"John Swinney’s decision to cut capital spending even faster than George Osborne has made it harder for many firms to find business in Scotland, and more firms going under is a worrying development for the coming months."
Speaking about the rise in personal insolvency, Ms Grant added:
"Bankruptcy is a personal tragedy for anyone affected, as are other less severe forms of debt repayment.
"The real story here is the human one – people being smothered by debts at a time of rising unemployment and rising prices.
"This is the sign of the faltering Scottish economy. With over 212,000 Scots out of work and a crisis in youth unemployment, we need an urgent plan to get people back to work.
"Labour is also calling for urgent action on the cost of living to get energy prices and household bills down."
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