Shaping the agenda: R3 summer update

27 August 2024

Despite the hot summer, R3’s staff have been keeping cool and keeping busy. In this blog, we discuss a few of the many projects R3 has been working on, from policy to events, and making and shaping the news.

Shaping debt solutions in Scotland

In July R3’s Scottish Technical Committee responded to the Scottish Government’s Stage 3 consultation on Scotland’s statutory personal insolvency debt solutions, which was a key opportunity to evaluate and reform these to better support both debtors and creditors.

R3’s response highlighted concerns about the consultation process, such as the lack of detailed consideration of previous feedback and the absence of an insolvency practitioner on the review team. It also provided recommendations for improving the effectiveness of the current debt solutions, including better access, maintaining debtor choice, and leveraging technology and government collaboration.

The consultation is now closed and we will be keeping an eye out for the Government’s response to ensure that members’ voices are heard during the next steps of this process. Thank you to the working group that was formed from R3’s Scottish Technical Committee for their time and efforts in shaping this response on behalf of R3 members.

Campaigning for clarity on creditor status

Following two recent court decisions, R3 has written to The Insolvency Service, in collaboration with the Regulatory Professional Bodies (IPA, ICAEW and ICAS) seeking urgent clarification on the Service’s view that ‘a creditor is set at the point of entry to the procedure and that this remains, even if payment in full is subsequently made’.  The court determined that the administration period had been validly extended and the consent of the paid secured creditors was not required which was contrary to the Insolvency Service view.

We will provide a further update once the Insolvency Service has replied to the letter, a copy of which is available to members here.

SPG Forum 2024 keynote speaker confirmed

R3’s events team has been working with the Forum organising committee to finalise plans for the SPG Forum 2024, which returns to the Belfry Hotel this November. This year’s keynote speaker has been confirmed as Lee Castleton, a former sub-postmaster who has played a pivotal role in the fight for justice for those affected by the Post Office scandal.

Lee will use his session to share the impact that his experience as a sub-postmaster, the subsequent bankruptcy he faced, and his involvement in the ongoing Post Office Horizon inquiry have had on his life.

Given the high-profile of this case, the powerful human interest stories at the heart of it, and the potential implications it could have for the bankruptcy process and bankruptcy policy, this session is set to be one of the highlights of this year’s programme.

Political monitoring and stakeholder engagement

Following Labour’s win in the July General Election, the Department for Business and Trade announced that the minister responsible for the Insolvency Service is Justin Madders MP, who takes over the role from Kevin Hollinrake MP. We will be watching closely to see how the new minister’s approach shapes insolvency policy and the wider business landscape in the coming months as the Government returns from recess.

As well as monitoring the result of the election, R3’s Policy and Public Affairs team also held several meetings in July with a range of stakeholders including Companies House and UK Finance. These discussions were wide-ranging but centred around fraud and data-sharing, ensuring that insolvency practitioners have adequate access to the information they need to carry out their investigations. 

Forums for discussion

As well as plans for the SPG Forum in November, R3's Events team has also been gearing up for the Northern and Eastern Forums, which take place in September.

This year's Northern Forum returns to the North East in Durham, and is hosted by R3 North East Chair Kelly Jordan.

One programme highlight is the mock trial session, in which an insolvency practitioner and two barristers will stage a courtroom scenario. This session will be a rare opportunity to witness firsthand the experience of being cross-examined by a barrister.

We’ll also hear from Gareth Harrison, our keynote speaker, about what’s behind the Bank of England’s latest interest rate decision (due at noon on the day of the Forum) and their latest predictions for the UK economy. 

The 26^th September sees Hayley Watson Chair her first Eastern Forum as R3 regional Chair, where she will welcome members from across the Eastern region to enjoy a jam-packed programme of sessions in Norwich.

One key highlight will be Joe Curl’s session on the landmark BHS case, where liquidators secured judgments against a number of former BHS directors for both wrongful trading under s.214 and misfeasance trading under s.212 of the Insolvency Act 1986. This session will explore the distinctions between these types of liability, the impact of the Sequana case, and the broader implications of the judgment for the insolvency profession.

Tickets for both Forums are still available and can be booked via the events page on the R3 website.

R3 in the media

Media interest in the profession and its work continues to be high. Our comments on the June and July corporate and personal insolvency statistics featured in stories in a number of national, trade and regional publications, including the Daily Telegraph, the Daily Express, the I Newspaper and the Guardian’s business live blog.

Towards the end of July, our comments on the Q1 insolvency statistics for Scotland, published by Accountant in Bankruptcy, featured in the Times, as well as regional and trade publications including Credit Connect, Scottish Business News, and Scottish Financial News.

News of local business trends were also popular with the regional media in July, with news that insolvency-related activity in the North East and in Yorkshire fell in May featuring in publications including Business Live, the Newcastle Journal, the Yorkshire Evening Post and the Star Sheffield, while news of a drop in start-ups in the Midlands featured in Insider Media, the Business Desk, and East Midlands Business Link.