Policy and Public Affairs update: June 2025

01 July 2025

June was a month of focused political engagement, cross-sector collaboration, and legal advocacy for R3’s Policy and Public Affairs team. Our team has been working to ensure the profession’s voice is clearly heard and constructively represented. 

Tackling fraud with Parliamentarians

Last month, we met with Jim Shannon MP, a vocal advocate on fraud-related issues and member of the Democratic Unionist Party. The meeting, which included representatives from R3’s Fraud and Asset Recovery Group, provided a valuable opportunity to highlight the insolvency profession’s unique contribution to tackling fraud.

As the Government continues to prioritise fraud through its Fraud Strategy and public sector anti-fraud initiatives, R3 is positioning the profession as a key partner. Practitioners are often on the front line of tracing illicit financial flows, investigating phoenixism, and returning funds to creditors. We will continue working with parliamentarians who recognise the strategic value of this work.

Briefing the Lords

Following ONS data showing a sustained increase in corporate insolvencies, the House of Lords held a debate on the “Reasons for the reported rise in corporate liquidations in the year to 31 March 2025.” We provided a detailed briefing to peers, outlining factors including post-COVID debt burdens, tightening credit conditions, and sector-specific stress in retail, hospitality, and construction.

Our engagement ensured that contributions to the debate reflected not just macroeconomic data, but also the insights and experiences of the profession.

Monitoring amendments

The Employment Rights Bill continues to progress through the House of Lords, where we have been closely monitoring—and supporting—amendments related to collective redundancies and protective award claims. These elements have direct implications for office holders handling insolvent company closures.

R3 has provided briefings to peers to highlight how proposed changes may create uncertainty or unintended burdens. We are working closely with our Employee Working Group and General Technical Committee to keep members informed as the legislation develops.

Consulting on restructuring

In the middle of the month, we submitted R3’s response to the recent judicial consultation on the draft practice statement for Schemes of Arrangement and Restructuring Plans. These tools—particularly Part 26A Restructuring Plans—have become increasingly important for businesses seeking to avoid formal insolvency.

Our response welcomed the overall aim of the draft Statement to improve efficiency and reduce court time, but also highlighted several practical concerns, particularly around the requirement to issue claim forms before a court hearing date is confirmed. This could raise confidentiality risks and trigger unintended consequences, potentially making other processes more attractive than a scheme or plan in some cases. You can read the full consultation response here.

A final version of the practice statement is expected in July.

Engaging with members

Last month also saw the team attend R3’s Contentious Insolvency and Creditors’ Forum, where we heard directly from practitioners about key legal and procedural issues in the sector. These conversations are invaluable in helping us align our policy priorities with real-world practice.

As always, our work is only possible thanks to the expertise, time and insight of R3 members. Whether it is through faculty groups, survey input, or direct involvement in briefings, your contributions ensure that our advocacy is credible, informed, and effective.