PUBS in Scotland are the least likely to go bust in the UK, despite the mounting costs faced by hospitality operators, new insolvency figures have signalled.

Against a backdrop of what Scottish trade groups insist are unprecedented financial pressures, only 17 per cent of pubs north of the Border were found to be a higher than normal risk of insolvency. That compares with a UK average of 21 per cent.

Figures from R3, whose survey reflects a snapshot taken across the industry once per month, also underlined the health of the restaurant sector in Scotland. Only restaurants in the north west of England were less likely to enter insolvency than those in Scotland, at 20.9 per cent versus 21 per cent.

The figures may surprise industry watchers given the pressures facing the trade brought by huge hikes in business rates, mandatory costs such as the National Living Wage, and changes to drink-drive legislation.

A campaign by The Herald this year revealed how hundreds of outlets faced business rates increases of up to several hundred per cent. It led the Scottish Government to cap rates increases for hospitality outlets while a review of the rating system is carried out.

Tim Cooper, chairman of R3 in Scotland in Edinburgh, said: “Scottish cuisine is gaining an international reputation, while our pubs are no less renowned, so it’s great to see their financial outlook remaining strong.”

He added: “An issue to watch out for, however, is the incoming business rates changes, which will have a particular impact on pubs and restaurants.”