House of Commons – Jan. 8, 2015

That this House notes the recent report by Professor Peter Walton on the likely impact of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 on insolvency litigation; further notes that Professor Walton's empirical evidence shows that from April 2015 the Act will have a negative impact on creditors, including the taxpayer and businesses, as well as the public interest; notes concerns from business groups representing creditors, including the Institute of Credit Management and the British Property Federation; is concerned that more than £160 million owed to businesses and the taxpayer each year could remain with directors or third parties that have wrongly, negligently or fraudulently taken money out of a business as a result of the Act; and calls on the Government to review the legislation before it comes into force in April 2015.