PPP update: January 2023

09 February 2023

The first month of 2023 saw movement on legislation on economic crime, a number of television and radio appearances, and engagement with the national, trade and regional media on the latest insolvency trends.

Reflecting and planning

At the start of the month, the PPP team sat down to reflect on key wins and moments from 2022 and discuss how we can build on these moving forward.

It was a year full of parliamentary mentions and engagement, media coverage and policy papers, and 2023 is shaping up to be just as busy.

With regulatory reforms on the table that will likely substantially change the way the insolvency profession operates, we’ll be working hard this year to make sure the value of the profession is understood by MPs and the public, that the profession’s views on the proposals are heard in Westminster and Whitehall, and that members are kept up to date with policy developments as soon as they arise.

And with the recent cabinet reshuffle and a possible change of government as the next General Election draws near, we’re also finding new ways to engage with politicians from all sides of the political spectrum to ensure that our voice is well-represented during policy debates.

And of course, we’ll also be working closely with our members to keep sight on the biggest issues and concerns you are facing and represent your voices at every possibility, whether in parliament or in the media.

Movement on economic crime

Towards the end of January, the Economic Crime and Corporate Transparency Bill began its report stage in the House of Commons.

Having engaged with politicians on the Bill since its inception, we were pleased to see shadow BEIS minister Seema Malhotra table one of our proposed amendments, which would allow the administrative restoration of companies by former liquidators.

Speaking on the clause, she said: “Currently, if creditors, former creditors or liquidators wish to apply to restore a company, that is done through the court in what is often a complex and costly procedure that may well take 12 to 18 months or longer. In Committee, the Minister said that there ought to be a basis for a “less cumbersome” process for creditors and particularly for liquidators. We agree.”

She continued: “The key issue is that unscrupulous directors can misappropriate the strike-off process to avoid scrutiny and rack up debts or sell company assets ahead of the company dissolution, absconding with the proceeds.”

However, while the new clause was mentioned by Seema Malhotra in her opening remarks, it was unfortunately not taken to debate. We will continue to campaign for this amendment now the legislation is in the Lords.

R3 in the media

Our comments on the 2022 insolvency statistics featured in stories in over 270 national, regional and trade media outlets in January, including the Evening Standard, the FT, the Guardian, the Daily Mail, and the Times.

Meanwhile, the Q3 corporate and personal statistics for Scotland also picked up a range of cuttings, including the Daily Express, Insider, and Credit Connect.

Last month, we appeared on four television and radio broadcasts in January, including BBC’s News at Six and News at Ten speaking on the annual insolvency statistics, an appearance on BBC Radio 5’s Wake Up to Money also discussing the December insolvency statistics, and North East Chair Chris Ferguson spoke to BBC Radio Newcastle about insolvency trends in the region.

Our announcement of new committee members in the North West featured in a number of publications in the region, including Business Live and The Business Desk, and comments on local business trends featured in stories in the Yorkshire Post, Insider, Irish News and a range of other local, regional and national media outlets.