Oral Answers to Questions

Chris Clarkson Excerpts

Tuesday 16th June 2020 Commons Chamber

The Secretary of State was asked—

[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.

[Chris Clarkson]

I thank my right hon. Friend for that answer. I was proud to make my maiden speech on Second Reading of that very important Bill, which will provide vital safeguards during the coronavirus pandemic. Can he tell me what benefits it will have for businesses, not just in my constituency of Heywood and Middleton and across the north-west but in the wider country?

[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.