R3 policy and public affairs update: May 2026

04 June 2026

R3 has been actively shaping key policy debates this month, responding to the government’s consultation on proposals to expand the threshold for triggering collective redundancy obligations. The consultation explored the introduction of a new organisation-wide threshold, which could significantly widen the scope of collective consultation requirements.

Drawing on the expertise of the R3 Employee Working Group, alongside wider member insight gathered through a targeted survey, our response focused on ensuring that any reforms remain proportionate, practical, and workable — especially in insolvency scenarios where speed, clarity, and certainty are critical. We highlighted a number of potential unintended consequences and emphasised the importance of striking the right balance between strengthening employee protections and enabling effective business rescue. You can read the full response here.

Alongside this, R3 is engaging closely with the Insolvency Service’s review of the Corporate Civil Enforcement Regime. A cross-committee working group—bringing together expertise from the General Technical Committee, Scottish Technical Committee, Smaller Practices Group and Policy Group—is currently developing our response.

To support member engagement, R3 also hosted a dedicated webinar with the Insolvency Service policy team. The session provided valuable insight into the case for reform, proposed changes to investigatory powers and enforcement processes, and how the regime may distinguish between serious misconduct and lower-level behaviour.The discussion also explored the practical implications for insolvency practitioners. The webinar recording is available here.

The Public Affairs team has also continued to support the work of R3’s Higher Education Institutions (HEI) Faculty, which is building a focused programme to address the financial and governance pressures facing the sector. The Faculty is progressing work to identify where greater clarity and guidance could support directors and trustees, while maintaining active engagement with regulators and policymakers as the landscape evolves.

Following the King’s Speech, the team produced a detailed briefing analysing the government’s legislative priorities and their implications for the profession. This included early insights on potential developments in economic regulation and a proposed late payments bill aimed at tackling delays by large businesses in paying their smaller suppliers. With these reforms beginning to take shape, R3 is well positioned to continue engaging with government and ensuring the profession’s voice is heard.

Finally, the team supported R3 CEO Caroline Sumner in preparing a presentation for the Chartered Institute of Credit Management’s (CICM) Credit Leaders’ Briefing. The session explored the current trends and challenges in insolvency and restructuring, setting out the financial headwinds facing UK businesses while highlighting the vital role played by insolvency and restructuring professionals in supporting recovery and contributing to a resilient, well-functioning economy.