Corporate Liquidations

Debate between Lord Watts and Lord Leong

Tuesday 10th June 2025 Lords Chamber

[Lord Leong (Lab)]

The noble Lord makes an interesting observation that I do not share. First, there is no empirical evidence to suggest that NICs or business rates changes are primary reasons for any of these closures in the UK. I can give examples of businesses that are doing very well. Let us look at the hospitality business. I just looked at the latest results for JD Wetherspoon, which had revenue of £2.2 billion and EBITDA of £19.28 million. Stonegate, one of the largest pub companies in the UK, had revenue of £1.75 billion and EBITDA of £394 million. These are not companies that are in trouble. The picture is mixed. Yes, we have some contraction in the business sector, but businesses are thriving. Do not listen to me. Listen to people such as the president of Blackstone, who this week said:

“I would give the UK Government a lot of credit for embracing business”.

[Lord Watts (Lab)]

My Lords, is it not the case that under the last Government we nearly had bankruptcy in the economy, we had very low levels of growth and we had poverty wages? Is it not time for them to have a period of silence?

[Lord Leong (Lab)]

I thank the noble Lord for that question. All I can say is that in my long years of business I have learned one thing. Turnover is vanity; profit is sanity. If companies keep chasing turnover without the support of working capital, they will be on the first and pretty fast step to failure.

Audit, Reporting and Governance Authority

Debate between Lord Watts and Lord Leong

Monday 31st March 2025 Lords Chamber

[Lord Leong (Lab)]

I thank my noble friend for his question. It is true that these reforms are long overdue, which is why this Government are working on them at pace. My noble friend will understand that I cannot pre-empt any pre-legislative scrutiny process for either the content of the draft Bill or the timing of its introduction. However, we are fully committed to delivering these changes and doing so in a way that ensures that parliamentarians, businesses and wider stakeholders are part of the journey.

[Lord Watts (Lab)]

My Lords, the Minister set out some of the recent scandals that have occurred. Can he tell us how many people have gone to jail over those scandals and whether the proposed legislation will hold these people to account?

[Lord Leong (Lab)]

My noble friend makes a very important point. I do not know whether anyone has been sent to jail, but I will find out and write to him. It is important that noble Lords recognise that the current regulator has limited powers. The new regulator will have additional powers to ensure that directors are held responsible for their fiduciary duties. It is important that we get it right and that we consult widely, but, at the same time, we do not want to overburden SMEs and other businesses with the new regulator. We are taking our time to make sure that we get it right.