Government extends temporary insolvency measures

The government has extended temporary insolvency measures providing further support to businesses during the Covid-19 pandemic.

The measures, which have been previously extended on a number of occasions, are set to be extended till the end of June.

Introduced in the Corporate Insolvency and Governance Act in March 2020, the measures include protecting businesses from aggressive creditor enforcement due to debts related to the pandemic and removing personal liability on company directors.

“We’re extending these important measures to give businesses the extra breathing space they need as we cautiously reopen the economy and look to build back better from the pandemic,” Minister for Corporate Responsibility Lord Callanan said.

“With the threat of aggressive creditor action and insolvency eased, companies will be able to focus all their efforts on their recovery.”

The temporary measures apply to England, Wales and Scotland. Insolvency in Northern Ireland is devolved and NI Ministers are considering a corresponding extension of their legislation.