UK Monthly Insolvency Statistics – Chancellor must act to stem tide of insolvencies : MHA comments

14/11/2023
Michael Reid, managing partner Meston Reid & Co

FOLLOWING the release of the UK monthly insolvency statistics this morning (Tuesday 14 November), Michael Reid, Insolvency Partner at MHA’s Abderdeen office, has called for an overhaul to business rates and policies to stem spiralling insolvencies:

“The government must act swiftly to stem the rising tide of insolvencies and stimulate growth. The current plight of hospitality and retail businesses demands urgent government intervention through a comprehensive overhaul of the business rate system.

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“The government must create a system that is based on turnover rather than property values. A minimum fixed rate that increases based on turnover would mean that retailers and local authorities would both be winners when a business does well and ensure they are not overburdened in downturns.

“HMRC also desperately requires increased funding to streamline its financial debt recovery processes. The existing Time to Pay system is a postcode lottery as to whether a firm will secure an agreement to repay its debts or face a winding up petition. Businesses need a more cohesive approach from HMRC so they have greater certainty when it comes to managing finances.

“To stimulate growth, a multifaceted approach is needed. This should include the reduction of red tape on exports, lowering interest rates and implementing a tax stimulus. Businesses yearn for policies that instil hope and foster a conducive environment for sustained growth. It is high time the government implemented measures that resonate with the needs of businesses and propel the economy forward.”

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