The Insolvency Service’s plans to reduce its expenditure this year have concerned R3, the insolvency trade body.
The department for Business, Innovation and Skill (BIS) announced plans to save £100 million in 2010-11 by cutting its running costs by 11% and invited its partner organisations to try to achieve the same, as part of its £836 million package of savings towards the Government’s target of saving £6.25 billion this year.
The Insolvency Service says it is inevitable that the cuts will, over time, lead to some reduction in the number of insolvency and live company investigations that it is able to pursue.
Steven Law, President of R3, said: “Insolvency Service offers BIS a carefully considered plan to meet the 11% cuts agenda. I understand [the] announcement of 11% cuts in running costs is an unavoidable necessity in this climate but am concerned it will lead to a reduction in the number of insolvency and live company investigations the Insolvency Service are able to pursue. This comes at a time when the number of cases of suspected misconduct by company directors has nearly doubled in 2009-10. Our members believe that
