Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his Department plans to reform the corporate insolvency framework.

In May 2016 the Government published its Review of the Corporate Insolvency Framework consultation. The consultation contained a package of proposals to improve the rescue opportunities for financially-distressed companies in Great Britain. A summary of responses to the consultation was published in September 2016. Since this time Government has continued to engage with a wide range of interested parties to consider the issues raised in response to the consultation and to further develop the proposals. This further work will ensure that any reforms, if necessary, will achieve the Government’s aims of ensuring that businesses have the appropriate options for rescue when facing financial difficulties. A response to the consultation will be published later this year.

In addition to this consultation, similar proposals were subsequently published in a draft EU Directive in November 2016. The Government is currently involved in negotiations on the draft text and any future implementation of the Directive, if adopted, will be determined by the terms of the UK’s withdrawal from the European Union.