The effects of a financial crisis can be testing at the best of times with struggles to pay household bills prevalent across Britain. Job losses, limited employment options and increased inflation all have restricted the enjoyment of a large number of British citizens, but the final quarter of 2014 saw improvements for some Scottish businesses along with their workers. For too long the people of Britain have been suffering financially as a result of the global crash – something that was no fault of their own. The figures published by the Accountant in Bankruptcy (AiB) reflect a positive step forward for Scottish businesses and their population.
Personal insolvencies dropped by 12 per cent between October and December 2014 (2,633) which is the lowest since the recession began. Fewer companies went into liquidation during these three months which was nearly 16 per cent lower than the same period in 2013. Although this does not guarantee a swift economic recovery, it is at least some positive news after a troubling number of years. Britain’s economy has slowly been growing although it’s fair to say politicians would have hoped for a speedier and more significant economic growth in the UK.
It is understandable to view the AiB’s figures with an element of pessimism, because of the financial uncertainty around Europe. Bryan Jackson, business restructuring partner with accountancy firm BDO, believes there will be difficult times ahead for European companies: “Business owners need to prepare themselves for a bumpy ride in 2015 as patchy growth in many parts of Europe may impact on growth in Scotland,” he warned.
On the other hand the fact there has been a reduction in personal insolvencies should not be dismissed either. Unemployment is falling in the UK and that can only be a good thing for its people. A downside of the research is that the period was before, not after Christmas. Unfortuantely, there are several cases of people plunging into debt by spending too much during this special time of the year and some take out high interest loans that actually worsen financial positions.
Business minister Fergus Ewing said the government could not rest on their laurels despite improvements at the end of 2014. “There can be no doubt insolvencies falling back to pre-recession levels reflects the improving economic picture in Scotland – but there is no room for complacency,” he said.
Here at Trust Deed Scotland, our team of financial experts are always on hand to provide you with impartial guidance when it comes to your financial difficulties. By keeping abreast of news regarding personal debt, including government legislation, public borrowing trends and national statistics, we are perfect placed to lend a hand. Payday lenders may seem attractive at the time, but they are like a rotting apple for your finances. They have a bad reputation for a reason, whereas we are proud to say Trust Deed Scotland have an excellent Trust Pilot rating thanks to our helpful staff and expertise.
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