Removal of Crown preference - Open season for banks to close solvent companies

The Government with the removal of Crown preference correctly reacted to a number of reports over several decades that identified that unsecured creditors were losing out to HMRC.


What the Government did not see coming was the banks would make themselves the secured creditor at the expense of the taxpayer.

Conservatively that is around £200M revenue that should have gone to the tax payer and a further £200M in redundancy and social costs when solvent companies are forced into insolvency by the greed of banks and factoring companies.

The Government needs to tr-introduce Crown preference - The taxpayer cannot continue allowing banks and factoringcompanies to continue profiteering at their expense