Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the effect on levels of company insolvency in each sector of the economy of the decision not to extend the provisions on wrongful trading in the Corporate Governance and Insolvency Act 2020.
The wrongful trading provisions are an important protection for creditors against insolvent trading but were suspended at the peak of lockdown to support directors to continue to trade whilst accessing the financial support put in place by Government.
Since the suspension was first introduced a range of measures have been brought in by the Government to provide support for business and save jobs across all sectors of the economy. In addition, a range of temporary measures to protect businesses in all sectors from insolvency have been further extended.