Arcadia and Debenhams: Business Support and Job Retention

Lord Stevenson of Balmacara Excerpts

Thursday 3rd December 2020 Lords Chamber

[Lord Stevenson of Balmacara (Lab) [V]]

My Lords, I am sure the whole House joins with me in expressing deep sympathy with those who are at risk of losing their jobs just before Christmas, at a difficult time in the high street and, more generally, because of the pandemic. During the passage of the Corporate Insolvency and Governance Bill earlier this year, we put forward amendments to make pension fund holders priority creditors when businesses go bust. Would this not be a very good opportunity for the Government to review their decision not to proceed on this issue? SMEs, such as those that supply Debenhams and Arcadia, do badly when big firms get into trouble. Their debts are rarely given priority in a liquidation and are lost if there is a pre-pack. The Government are consulting on the powers of the Small Business Commissioner. Will they ensure that much-needed new powers for the commissioner in this area are given proper consideration?

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, I remember the noble Lord’s amendments to the Corporate Insolvency and Governance Bill very well, but it was always a question of getting the balance right. Elevating the rights of pensioners would have negatively impacted suppliers and the unpaid wages of existing employees. The trade credit reinsurance scheme is designed to support small businesses coping with the economic impact of Covid-19, and I assure the noble Lord that we will take his views on new powers for the Small Business Commissioner into account.