House of Commons · General Debate
28 April 2021 · 5 other contributors
Opened by Paul Scully Con Office of the Deputy Prime Minister and Chancellor of the Exchequer
Summarised by AI from the official record, so it can contain mistakes.
Paul Scully raised concerns about insolvency in the House of Commons. Other MPs contributed to the debate.
Key points
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
The Government propose to extend temporary measures under the Corporate Insolvency and Governance Act 2020 until June, providing protection against insolvency for businesses struggling due to the pandemic. The extension will cover suspension of statutory demands and filing petitions to wind up companies, small supplier exemptions, termination clause provisions, wrongful trading liability, modifications to moratorium rules, and temporary moratorium rules until September.
Welcomes the extension but expresses concern about the ongoing uncertainty for businesses. Advocates for a student loan-style scheme to address the debt burden on firms post-pandemic and calls for wider reform of insolvency laws to protect critical industries like Liberty Steel, suggesting a US-style chapter 11 process.
Commends the Government's measures but highlights concerns over future corporate governance reforms. Suggests that while temporary measures were necessary during the pandemic, there is a need to consider permanent reforms in areas like director responsibilities and environmental considerations. Encourages participation in the call for evidence on insolvency rules.
Emphasises the importance of corporate governance and audit transparency, expresses concern over extensions to the Corporate Insolvency and Governance Act 2020 provisions, highlights the impact on supply chains and self-employed individuals, stresses the need for support in Aberdeen due to Brexit, covid, and oil price reductions, urges the Government to consider smaller organisations beyond the big picture.
Questions the long-term plan of the Government to support businesses, raises concerns over the impact on excluded groups such as owner-managers and self-employed individuals, highlights potential unemployment and business closures due to forced repayments of emergency loans, calls for proper business support including direct access to Government contracts and prompt payment codes, suggests delaying loan repayments until profitability is restored.
Raised a point of order regarding the Prime Minister's inaccurate claim during Prime Minister’s questions that friends in the European Union voted to approve their Brexit deal which he opposed. Corrected the record by stating that on 30 December 2020, Labour backed the Brexit deal agreed between the UK Government and EU to avoid a no-deal scenario.