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Scottish builders under financial threat By Kristy Dorsey Thousands of construction firms in Scotland face a “high risk” of closing in the coming months as new tax rules and the end of government financial support combine to create pressure that will be felt particularly by sub-contractors. The warning from restructuring specialist Azets comes as furlough has started winding down to its eventual closure in September. The end of the employment support scheme also coincides with the expiry of temporary measures introduced under the Corporate Insolvency and Governance Act 2020 (CIGA) to protect business impacted by the pandemic. The temporary CIGA measures included restrictions on the winding-up process that have suppressed the official number of business failures so far during the pandemic, leading to warnings of rising numbers of “zombie companies”.

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