Oral Answers to Questions

Aaron Bell Excerpts

Tuesday 16th June 2020 Commons Chamber

[Chris Clarkson (Heywood and Middleton) (Con)]

What steps his Department is taking to support businesses facing insolvency.

[Aaron Bell (Newcastle-under-Lyme) (Con)]

What steps his Department is taking to support businesses facing insolvency.

[The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)]

Mr Speaker, may I join you in your words about our former colleague, Jo Cox?

We have introduced the Corporate Insolvency and Governance Bill to help companies maximise their chances of survival. The Bill introduces new corporate restructuring tools and temporarily suspends part of insolvency law to help businesses keep trading.

[Alok Sharma]

My hon. Friend is proving to be a real champion for businesses in his constituency, and he raises an incredibly important point. The impact assessment of the Bill’s measures suggests that the three permanent changes to the UK insolvency framework will result in net benefits to business of over £1.9 billion in today’s prices, which is a much needed boost for businesses at this uncertain time.

[Aaron Bell]

I welcome the Secretary of State back to the Dispatch Box after his recent illness. Businesses in Newcastle-under-Lyme and across the country face the risk of insolvency, especially those with business models that are dependent on socialising. In addition to what he has set out, which I welcome, can he tell us what Companies House proposes to do to support businesses at threat of insolvency?

[Alok Sharma]

My hon. Friend raises an important point, and this is part of the Bill. While Companies House has extended the period for filing accounts, we will give businesses the maximum period available under the powers in the Corporate Insolvency and Governance Bill for filing their accounts, confirmation statements and event-driven updates. At a time when many companies are focused on surviving, that will be very welcome respite.