Construction has been badly hit

The pattern of business failures also reveals distinct differences between different parts of the country.

In the UK as a whole the trend is downward, but in Scotland only Lothian recorded fewer failures than previously.

Grampian and Tayside recorded major increases, and Strathclyde, which accounted for over half of the Scottish insolvencies, also saw a rise.

A Grant Thornton spokesman said the figures showed conditions were becoming more difficult for Scottish businesses.

He added that construction and property have been particularly badly hit.

The total number of UK receiverships went down from 967 in 1999 to 872 in 2000.

Salvage efforts

The UK wide results also showed the construction industry improving on the previous year's performance, despite the problems in Scotland.

Mike Jervis, a receivership expert with the firm, said: "The figures provide an interesting snapshot of the fortunes of UK industry. There is a global downward trend in receiverships, fuelled in part by the banks' work in salvaging viable businesses before they fold.

"Turn-around solutions are appropriate when business confidence is high, for example where new equity can be raised, subsidiaries disposed of and management teams strengthened.

"How this will hold up if the climate changes dramatically remains to be seen."