Insolvency Service launches five year strategy

The Insolvency Service says it can drive even greater impact by helping people and businesses spot problems and find the right support earlier, and resolve them faster, before their situation escalates.

The agency’s new five-year strategy outlines a marked change in how it will work in future, making sure it spots risk sooner, guides people with financial or business problems towards the right options for help, and makes the whole system easier to navigate.

Better intelligence and closer working with Companies House and HMRC will also help to identify deliberate misconduct by directors sooner – including those abusing the rules around phoenix companies – focusing on those that cause the most harm, returning assets to creditors, and money to the economy.

There will also be a renewed focus on improving the insolvency system, working with the sector to make it easier for them to do their job while maintaining high standards.

Duncan Beach, Chief Executive Officer for the Insolvency Service, said “Understandably, we are often seen as the organisation that steps in when things have already gone wrong. But by helping people and businesses make informed choices sooner and returning money and assets to productive use more quickly, we can make a greater contribution to economic confidence and growth.

“At the same time, we will continue to take firm action against those who abuse the system for personal gain – not least those behind abusive high street and phoenix companies. We will target the individuals and companies causing the greatest harm, protecting legitimate businesses and strengthening trust in the economy.

“This strategy is about acting earlier, moving faster and working more closely with partners across the system. I am asking directors, insolvency practitioners and our wider stakeholders to join us in creating the conditions for greater confidence, resilience and growth across the UK economy.”

Caroline Sumner, CEO of R3, the UK association for restructuring, turnaround and insolvency professionals, said “We welcome the Insolvency Service’s new strategy and its focus on helping people and businesses address financial difficulties earlier, tackling misconduct and the misuse of corporate structures, and supporting entrepreneurship and economic growth.

“We are particularly encouraged by the commitment to work in partnership with the insolvency profession to create a more proportionate, less burdensome and modern insolvency framework.

“We look forward to continuing the conversation with Duncan Beach and colleagues to help turn the strategy’s ambitions into practical improvements that benefit insolvency professionals and the businesses and individuals with which they work.

“Creating a modern, sustainable Insolvency Service and delivering effective insolvency legislation that delivers the tools that the profession needs to rescue businesses will benefit everyone.”