Coronavirus update: Business West welcomes new insolvency and red tape measures

March 30, 2020

The latest moves by the government to support businesses, including relaxing the insolvency laws and removing some red tape, have been given the thumbs up by the region’s largest business organisation.

Business West described the measures, announced by Business Secretary Alok Sharma on Friday evening, as sensible steps that would help protect companies weakened by the impact of the coronavirus pandemic. 

Business West managing director Phil Smith said: “Businesses will welcome the government’s sensible steps to amend insolvency laws to help protect companies weakened by the impact of coronavirus.

“It is right that the rules on wrongful trading are temporarily suspended to ensure that directors are not penalised for doing all they can to save companies and jobs during this turbulent period.

“Companies that were viable before the outbreak must be supported to ensure they can help power the recovery when the immediate crisis is over.”

He said cashflow remained an urgent concern for many businesses, so it was vital that government support packages reach businesses and people on the ground as soon as possible.

He also welcomed measures to cut red tape to allow companies to produce Personal Protective Equipment (PPE) and hand sanitiser more quickly, saying it would help them to contribute towards the national effort to tackle coronavirus.

“Action to speed up the production of these supplies will be vital to limiting the spread of the virus and reducing the burden on our health service,” he added.

Business West runs chambers of commerce and business-led groups across the South West, including the Swindon & Wiltshire Initiative.


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