Question

To ask the Secretary of State for Business, Innovation and Skills, how he plans to measure the insolvency industry's success in voluntarily implementing the recommendations of the Graham Review.

Teresa Graham's review of pre-pack administration identified how existing practice in pre-pack administration did not in all cases deliver the best result for creditors and the wider economy, in particular where sales are made to a connected party.

The Government hopes that the voluntary measures recommended in Ms Graham's report – all of which were accepted by Government – will be put into effect by those concerned as envisaged by Ms Graham.

After they have had time to have effect, the Government will evaluate whether they have indeed addressed the concerns evidenced by Ms Graham and the resulting outcomes. This will include for example whether the measures have increased transparency, returns to creditors, and more generally strengthened business confidence in the pre-pack process.

As recommended by Ms Graham, the government will be taking a backstop power in the Small Business, Enterprise and Employment Bill so we will be able to legislate in future if necessary.