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Written question asked by Adrian Bailey (Labour) on Tuesday, 1 October 2019, in the House of Commons. It was due for an answer on Thursday, 3 October 2019. It was answered by Jesse Norman (Conservative) on Tuesday, 8 October 2019 on behalf of the Treasury.

Insolvency

Question

To ask the Chancellor of the Exchequer, what assessment he has made of the effect of establishing HMRC as a secondary preferential creditor in insolvencies on the sustainability of the Pension Protection Fund.

Answer

The Government carefully considered the case for reform prior to announcing this change last year, and it is the Government’s view that taxpayers can reasonably expect that when they have successfully paid their taxes, these go to fund public services as intended.

This measure represents a proportionate approach that balances the interests of taxpayers, the Exchequer, and other creditors.

The Government expects the impact on the sustainability of Pension Protection Fund (PPF) to be marginal. This reform will not lead to a significant change in recoveries to the PPF compared to current returns.

The Government does not expect this reform to affect significantly SMEs’ access to finance or corporate insolvencies, and in line with the Government’s commitment to open and consultative policymaking is engaging with a wide variety of stakeholders to ensure policy changes are well informed and based upon the best available evidence.

Secondary information

Type
Written question
Reference
292833
Session
2017-19
Grouped for answer
Yes
Subjects
Insolvency Insolvency Service Pension Protection Fund
Link
View this Written question on www.parliament.uk