Discussion group: Insolvencies and DWP MOU.

Posted on 05/07/202305/07/2023 by Malcolm

The recent discussion group focused on the escalating number of insolvencies and their impact on tax billing and collection. We also delved into the matter of the Department for Work and Pensions’ data Sharing Memorandum of Understanding (MoU) and the reasons why some councils are hesitant to sign it, opting instead to seek legal advice. For detailed insights on this topic, you can find my thoughts on our website’s blog at https://bit.ly/VNDWPMoU.

The rise in insolvencies has become a cause for concern. While personal insolvencies have surprisingly decreased, business insolvencies have witnessed a significant increase over the past year. Bob Wagstaff aptly pointed out that the liquidation of a large company can have unforeseen repercussions on collection rates. Smaller companies, which were supported throughout the pandemic, are now grappling with the challenges posed by the cost-of-living crisis and high interest rates. Additional reports (accessible below) shed light on some underlying factors, such as banks tightening their lending practices for smaller companies and start-ups, as well as apprehension stemming from the failure to recover COVID-related business loans.

Given economists’ predictions of an impending global recession and the UK’s delicate financial standing, it appears that we are only at the initial stages of what could be the next significant trial.

The recording for this week can be accessed through this link: https://bit.ly/VN230703. The slide pack, and the reports and tables mentioned in both the slide pack and recording are below.

We also have a WhatsApp group where you can stay connected and participate in further discussions. You can join us here: https://bit.ly/3Qjrkqe.

Please note that the slide pack contains additional slides covering other items of interest in the news and job adverts, which are provided in partnership with Business Smart (https://www.businesssmartsolutions.co.uk/).