Leading the conversation at the Labour party fringe

Tackling fraud: Uncovering fraud and financial wrongdoing is a vital day-to-day activity for many R3 members. So we were keen to attend the panel on "Using innovation to tackle economic fraud".  It was highly illuminating with Economic Secretary, Lucy Rigby, committed to collaboration between industry, regulators, government, and tech platforms. Her statement on the potential for digital ID to bring value to financial services and prevent fraud is a strong signal that the Government sees technology as a tool to improve corporate diligence. 

R3 members’ expertise in this area is essential considering recent government crackdowns, including plans to tackle 'phoenixism', for which HMRC is often the main victim. The government's drive for closer interagency collaboration between HMRC, Companies House, and the Insolvency Service highlights the urgent need for better data sharing, a key focus of R3's policy work and our engagement with bodies like the All-Party Parliamentary Groups (APPGs) on Fair Banking and Investment Fraud. 

The R3 Fraud and Asset Recovery Group brings together experienced IPs and lawyers quarterly to discuss and promote the profession’s critical role in fraud disruption and returning money to victims. 

Regulatory reform and growth: In several sessions, most notably "What’s standing in the way of Labour’s growth mission," members of the Treasury Select Committee and the London Chamber of Commerce highlighted over-regulation as a challenge stifling new start-ups. Lucy Rigby's response, referencing the Leeds reforms and the FCA’s scale up unit, shows an awareness of the issue. For insolvency practitioners, a push towards proportionate, pro-growth regulation simplifies the landscape, making turnaround easier and more successful. 

Financial exclusion and the cost of living: Discussions around the cost of living and financial exclusion, led by MPs like Dame Meg Hillier and Jeevun Sandher, are essential for our members who deal with personal insolvency and individual debt. Any measures to address the "poverty premium" or digital exclusion will directly influence the people and small businesses our members help to get back on their feet. 

Financial services and tax policy: Discussions with the insurance industry revealed mounting concerns over further tax rises in the autumn budget. Many firms are currently adopting a "waiting it out" strategy to assess the full implications of potential new levies before committing to major investment or employment decisions. This environment of fiscal uncertainty can freeze capital markets, making turnaround finance harder to secure. 

Utilities and public trust: The water industry spoke candidly about the intense pressure to reverse negative public perception. While companies are investing heavily to upgrade infrastructure, including sewage treatment, to meet regulatory and environmental demands, this will take considerable time. The financial strain of these multi-billion-pound remediation and investment programmes, undertaken under intense public and political scrutiny, significantly increases the risk profile for this essential sector. 

Retail and employment: Representatives from the retail industry highlighted a dual pressure point. First, retail theft continues to be a major and unaddressed problem impacting profitability. Second, there are significant warnings that potential changes to business rates that penalise large employers will lead to further redundancies, compounding the job losses that followed the increase in employer National Insurance earlier this year. This combination of operational loss and employment cost hikes could trigger more large-scale restructurings. 

Housebuilding and regulation: The housebuilding industry voiced deep frustration over the slow pace of approvals for high-rise buildings. At a time when the Government is committed to delivering 1.5 million new homes, the regulatory bottleneck is severely damaging, particularly for SMEs who lack the financial resilience of large developers to absorb long waiting periods for approval. This regulatory friction is a clear cause of business distress in the construction supply chain. 

Aviation and green transition: In the airline industry, there was a consensus that airport expansion is crucial to support economic growth, but major concerns remain over the high costs associated with transitioning to cleaner forms of energy. This significant capital expenditure requirement, combined with existing high taxation for the sector, presents a major financial hurdle that must be carefully managed to avoid solvency issues.