Extension to Temporary Insolvency Measures
Extra Breathing Space for UK Businesses
The UK government is set to extend temporary insolvency measures which includes restrictions on issuing winding up petitions and statutory demands. The restrictions will last for a further three months until 30 September 2021.
The restrictions were introduced in the Corporate Insolvency and Governance Act 2020 and were designed to protect businesses during the pandemic from aggressive creditor enforcement and removing personal liability on company directors. The extended measures will provide UK businesses with much needed breathing space as they attempt to bounce back from Coronavirus.
Christina Fitzgerald from trade body, R3 said:
“Many companies across the country will appreciate the action the Government has taken today – particularly given the delay to the easing of lockdown announced earlier this week.
“Trading conditions have improved recently, but the Prime Minister’s decision to delay the removal of the final lockdown measures underlines that we’re still in choppy economic waters.
“While the extension of these measures will benefit many companies, as time goes on the Government will need to consider the impact on creditors – who have staff and overheads to pay themselves. Balancing these interests is a difficult task for the Government.
