LEGAL AID, SENTENCING AND PUNISHMENT OF OFFENDERS ACT 2012 AND INSOLVENCY LITIGATION

That this House notes the 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 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, including the Federation of Small Businesses, Chartered 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 carry out a formal review of the legislation before making an announcement on the issue before the end of the year.