Tag Archives: insolvency

31 January 2023 – today’s press releases

  • Suspend Raab, say Lib Dems
  • IMF forecast “damning verdict on Conservative Government”
  • Conservative Record on Businesses ‘in tatters’ as dam bursts on insolvency rates
  • Jane Dodds to Vote to Protect Welsh Farmers
  • Welsh Liberal Democrats Call for Negotiated Solution on Teachers’ Strikes

Suspend Raab, say Lib Dems

The Liberal Democrats have called on Deputy Prime Minister Dominic Raab to be suspended, following reports which have emerged alleging that at least 24 civil servants have complained about his conduct.

In November 2022, Rishi Sunak opened a formal investigation into Dominic Raab after formal complaints were made by officials about his conduct in the workplace. Now, reports have alleged that the number of complainants is potentially as many as 30 individuals.

Liberal Democrat Chief Whip Wendy Chamberlain has written to the Prime Minister, calling for Raab to be suspended for the duration of the investigation into his conduct, given the reported scale of complaints against him.

Liberal Democrat Chief Whip Wendy Chamberlain commented:

The reported scale of the allegations against Dominic Raab raises real questions for Rishi Sunak. Why hasn’t the Prime Minister suspended Raab yet, for the duration of this inquiry?

Rishi Sunak promised to govern with integrity but I’m afraid his track record so far is the opposite. Scandal after scandal continues to emerge about various members of the Cabinet, yet Sunak is incapable of doing the right thing and taking decisive action.

From Zahawi to Raab, from Braverman to Williamson, the British public are fed up with Conservative sleaze which sadly appears to have taken root at the very heart of government.

IMF forecast “damning verdict on Conservative Government”

Commenting on the new IMF forecast which shows the UK as the only major economy to shrink, Liberal Democrat Treasury Spokesperson Sarah Olney MP:

This is a damning verdict on the Conservative Government. High inflation, high-interest rates and high energy bills have left our country and hardworking families and pensioners suffering as a result.

While Number 10 lurches from one sleaze scandal to another people up and down the country are suffering from their incompetence and mismanagement. People deserve better than this Conservative shambles.

Posted in News and Press releases | Also tagged , , , , , , and | 9 Comments

A Case for British Chapter 11

It takes many years to develop a business and for it to grow. Enterprises employ millions of people who support their families and are the building blocks of our national wealth. Should we not be more supportive, as a society, when a company fails?

Since 2000, the number of businesses in the UK has increased each year, by 3% on average. In 2016, there were 2.2 million more businesses than in 2000, an increase of 64% over the whole period. Businesses actual employment of people has fallen since 2000 from around a third, to a quarter. This decline is due to the growth in self-employment. The total number of company’s insolvencies from 2013 to 2016 was just over 70,000 (Office of National Statistics).

In most countries, there are two tests for bankruptcy:

  • A company that cannot pay its debts because there is not enough money in the bank (this would tip a company in the UK into liquidation);
  • A company with liabilities that exceed its assets (the company can avoid liquidation if it can negotiate a deal with its creditors).

The UK’s insolvency system, on the whole, returns more money to creditors (as it’s more creditor centric) and is faster and cheaper than the United States, for example. However, a common complaint among struggling firms under the threat of insolvency is that the time for decision-making is too short. Critics believe firms need a longer period to consider their options and take decisions without jeopardising the company’s supply chain and increasing pressure on their cash flow, both of which will accelerate the commencement of insolvency. Therefore, there is a desire to ask the government to copy the Chapter 11 system in the United States, where companies are allowed 90 days’ grace.

Posted in Op-eds | Also tagged , and | 6 Comments

The Independent View: Ministry of Justice costs reforms undermine Vince Cable’s aim of tackling rogue directors

Statue of Justice - The Old BaileyA key message the Business Secretary Vince Cable has been keen to stress during his time in government is the need to tackle rogue directors: he’s announced plans to produce “stronger deterrents” and “more robust sanctions” to quash ‘dodgy directors’. Dr Cable’s – and insolvency minister Jo Swinson’s – policies on protecting creditors from rogue directors are certainly worth developing, but they are at risk of being undermined by policies being put forward by the Ministry of Justice.

The Ministry of Justice has been seeking to tackle the costs of litigation, but its reforms will end up having a big impact on the insolvency profession’s ability to combat rogue directors and will have disastrous and costly consequences for small business creditors and the taxpayer.

Posted in Op-eds and The Independent View | Also tagged and | 1 Comment
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