R3 is calling on the Government to find a way to introduce its reforms before the Brexit process is complete. This would ensure the UK’s corporate insolvency framework is fit for purpose for both the domestic and international markets, and continues to underpin the UK’s attractiveness as a place to do business by supporting trade, investment, lending, productivity, and entrepreneurship.

You have probably already been approached by a number of organisations offering you help with your business’s financial situation. This can be very confusing and it is often difficult to know where to turn for the advice you need. Sadly, not all of these organisations are reputable and many are unlicensed and unregulated, even though their marketing letters and websites may make them seem to be legitimate and trustworthy. Taking advice from them may, in fact, make your situation much worse. 

The UK’s insolvency regime is effective but has an important capability gap: there is no breathing space from creditor pressure that allows directors of struggling companies the opportunity to consider their options and take difficult decisions without risking a calamitous collapse of the company’s supply chain and increased pressure on cash flow, both of which could hasten the onset of formal insolvency. Filling this gap could help save more businesses and consequently return more money to creditors.

R3 recognises that the ‘Football Creditors Rule’ is considered an important part of maintaining a competitive league, but calls on the football authorities to do more to protect, and improve the position of, the unsecured creditor community by redressing the balance of the rule. Redressing the balance of the rule will also encourage League clubs to manage their finances more sustainably. 

In this paper, R3 looks at the current treatment of gift vouchers and consumer deposits and considers the difficult balance between enhancing protections for consumers whilst protecting business rescue and promoting a healthy lending culture.