Key Facts

• The proposed new clause requires an assessment by the Secretary of State.
• The assessment must be submitted no later than one year after the Act is passed.
• The assessment should consider the extent to which the provisions achieve their objectives, their interaction with other laws, and potential related changes.
• Clause 1 applies to England and aims to ensure that successful MCC appeals cannot be made based on the pandemic or the government's response.
• The next general revaluation is set for 1 April 2023, based on a valuation date of 1 April 2021.
• £16 billion package of support for business rates has been provided during the pandemic.
• New clause 2 would require an assessment of the effectiveness of clause 1's provisions within one year of Royal Assent.
• The Bill aims to rule out covid-related material change in circumstances claims for business rates appeals.
• An additional relief fund of £1.5 billion has been announced for businesses not benefiting from existing rates relief.
• Heathrow Airport had losses exceeding £2 billion, including a business rates bill of £120 million, but received only £8 million in relief.
• The government has committed an additional £1.5 billion for business rates relief.
• The existing support package includes £16 billion of relief over two years for retail, hospitality, leisure, and nursery ratepayers affected by the pandemic.
• Guidance for councils will be published after final discussions with organisations such as LGA, CIPFA, and IRV.
• The Secretary of State must lay a report before each House of Parliament no later than three months after the Act is passed.
• Each report includes the number of investigations and disqualifications made by the Insolvency Service in the preceding three-month period.
• An assessment of the provisions' effectiveness must be laid before Parliament within one year after certain sections come into force.
• The Company Directors Disqualification Act 1986 does not cover dissolved companies, allowing loopholes for misconduct.
• Clause 2 amends sections of the CDDA to include former directors of dissolved companies within three years of dissolution.
• Section 8ZA allows disqualification of individuals who exert influence over disqualified directors.
• Amendments ensure compensation orders or undertakings can be made against former directors of dissolved companies.
• The Bill aims to close loopholes exploited by unscrupulous directors who dissolve companies to avoid financial responsibilities.
• Witnesses testified that unscrupulous directors cause significant harm to creditors and may impact employment tribunal awards.
• New clause 1 would require quarterly reports from the Secretary of State on investigations and disqualifications of directors by the Insolvency Service.
• Duncan Swift, former president of R3, estimated the Bill could result in up to 15 times more investigations for the Insolvency Service.
• The Insolvency Service publishes insolvency statistics every three months.
• Experimental monthly data on insolvencies was added at the start of the pandemic.
• An annual report covers misconduct allegations and disqualification orders.
• Enforcement outcomes will include disqualifications against former directors of dissolved companies in future reports.
• A post-implementation review of the measure will be conducted within five years after commencement.
• The Insolvency Service prioritises cases where there has been most harm to the public and marketplace.
• The Insolvency Service has three years to apply for disqualification orders against directors after full liquidation but lacks this power if companies are dissolved without liquidation.
• A loophole exists allowing directors to dissolve companies to avoid disqualification, which the bill aims to address.
• Phillip Nunn and Patrick McCreesh have been involved in multiple dissolved companies and are suspected of misconduct involving £46 million in investor losses from Blackmore Bond plc.
• Companies House documents show young individuals listed as partners in limited liability partnerships.
• Clause 4 sets out technical aspects including territorial extent, commencement dates, and short title.
• Business rates measure relating to material changes of circumstances will commence upon passing the Bill.
• Investigation powers start immediately after passing for suspected serious breaches.
• Other provisions in clauses 2 and 3 will commence two months post-passage.
• The Welsh Government intends to include provisions applying to Wales.
• RDDB04 Philip Clarkson BSc FRICS IRRV, Director—Rating from Lambert Smith Hampton.
• RDDB05 R3, an insolvency and restructuring trade body.
• RDDB06 Supplementary evidence provided by the Institute of Revenues, Rating and Valuation (IRRV).