Insolvency group calls for Budget reforms amid worrying rise in business failures
PUBLISHED: 17:01 20 November 2017 | UPDATED: 17:01 20 November 2017
Urgent corporate insolvency reform is needed in the chancellor's budget, says a trade body, as new figures show a 15% year-on-year rise in cases across England and Wales.
R3 Eastern chairman Mark Upton, a partner at Ensors Chartered Accountants, is urging the chancellor to announce further positive insolvency measures to help struggling businesses in Wednesday’s speech.
He said the corporate insolvency framework in the UK was “one of the world’s best”, by ensuring quick and effective resolution of difficulties, but added that “we have to stay ahead of the competition”.
Reforms currently under government discussion include ‘last chance’ protection from creditors for company directors, aiming to help them turn their businesses around before a formal insolvency procedure becomes necessary. Also being mooted are reforms to ensure struggling companies receive essential supplies, such as utilities, while they try to resolve their financial difficulties.