Question to the Department for Business, Innovation, Science and Trade:

To ask His Majesty's Government whether they plan to review current legislation to ensure that businesses do not use pre-pack insolvency provisions to avoid paying outstanding business rates at the point of going into administration.

There are no plans to review the legislation in this area.

Pre-packaged sales in administration are an important restructuring tool that can help preserve viable businesses and jobs. In many cases they provide a better outcome for creditors, including local authorities for business rates, when compared to other insolvency options. Pre-packaged sales are subject to strict regulatory controls and safeguards, and directors found to have abused insolvency provisions to avoid debts are liable to criminal or civil action.