The only way to bring the factoring industry to heel is by bringing back Crown Preference

Why would the Chancellor not allow the Treasury through Crown preference to collect money when a company is in insolvency ahead of the banks - The Crown is left with the debt and the social costs the banks are left with a limitless bounty?
 
SMEs are calling on the Chancellor to re-introduce Crown preference to protect them from currupt factoring companies

Crown preference, the procedure that used to allow the Inland Revenue and Customs & Excise to receive money from a company ahead of other creditors.

The chancellor if in the next budget re-introduced Crown Preference, HMRC could give the government about £750m a year in extra revenue.

There is no commercial sense in the banks to have preferential status over the Crown. And if they didn't have preferential status they may work more efficiently as other creditors do to support SME's.