Call for Thames Valley businesses to take action on insolvency

R3 Chairman Garry Lee
R3 Chairman Garry Lee

WOKINGHAM businesses must take action on insolvency, a Berkshire trade body has urged.

R3 is encouraging employers to make the most of a range of temporary Government measures, to help prepare for the post-pandemic world.

The Government recently announced it will extend a number of insolvency rules, which were due to expire at the end of April, until the end of June to protect businesses for longer.

It has extended the Corporate Insolvency and Governance Act (CIG), which allows directors to continue trading despite not knowing if they will become insolvent in the future, and also restricted winding-up petitions which force companies into compulsory liquidation.

Garry Lee, chair of the R3 Southern and Thames Valley region, said: “The Government’s decision to extend the CIG Act temporary insolvency measures will be a welcome boost for Berkshire firms that are struggling as a result of the pandemic.

“It also provides directors of these firms with more time to plan for when these measures – and Government support initiatives like the furlough scheme – end, and we urge them to make the most of this.”

Mr Lee said Wokingham businesses have received “unprecedented” support from the Government throughout the pandemic.

“It will take time for the business environment to return to how it was before the pandemic started,” he added.

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