BCC responds to changes to insolvency laws

30th March 2020

Commenting on Business Secretary Alok Sharma’s announcement on the relaxation of the insolvency rules, BCC Head of Economics Suren Thiru said:

“Businesses will welcome the government’s sensible steps to amend insolvency laws to help protect companies weakened by the impact of coronavirus.

“It is right that the rules on wrongful trading are temporarily suspended to ensure that directors are not penalised for doing all they can to save companies and jobs during this turbulent period.

“Companies that were viable before the outbreak must be supported to ensure they can help power the recovery when the immediate crisis is over.

“Cashflow remains an urgent concern for many businesses, so it’s vital that government support packages reach businesses and people on the ground as soon as possible.”

Also announced were measures to cut red tape to allow companies to produce Personal Protective Equipment (PPE) and hand sanitiser more quickly. BCC Co-Executive Director Hannah Essex said:

“Businesses across the UK will welcome measures that help them contribute to the national effort to tackle Coronavirus. Action to speed up the production of these supplies will be vital to limiting the spread of the virus and reducing the burden on our health service.

“Chambers and their members are working together to see how they can play their part, including gathering unused PPE equipment from local businesses and delivering them to the NHS.”