Scotland sees sharp rise in Business Distress

The number of Scottish businesses in critical financial distress surged to 3,517 in Q4 2025, marking a 49.5% increase compared to the same period in 2024, when the figure stood at 2,353.
This alarming rise, revealed by the Business Distress Index from Real Business Rescue, outpaces the UK-wide average increase of 43.8%. Across the UK, 67,369 businesses were in critical distress by the end of the quarter.
Scotland’s higher-than-average increase highlights the unique challenges faced by its