Act now to save businesses and jobs.

LA was delighted to see Alan Duncan on Sky say that the laws on administration need changing and need changing quickly in order to save good businesses and good jobs in extrodinary times.
As it happens LA is meeting with one of the BERR big wigs tomorrow and this is what LA had already put on the agenda. With banks abitarily removing long standing lines of credit on businesses, many are going to administartion. Once this happens the whole thing is madness. the administrators still think they can do deals in 5 days! Wrong, that was when money was cheap and the banks were queing to give it out. The administrators therefore chose to close the business and sell of its assets for pennies at auction. The main driver for this is their resposibility to maxamise return for creditors. In most administrations, the biggest creditor is HMRC, yes the tax man.
LA last week was trying to take a business out of administration, this would have saved up to 170 direct jobs and around 50 others. The deal fell apart over the timescale and the fact that an asset stripper effectivly offered £200k more. The company has closed. The system therfore maxamised its return for HMRC as a creditor. However it should be noted that the taxpayer is now picking up the social security tab for nearly 200 famalies. Crazy is the politest word LA can use, HRMC make a one off extra £200k max but will see that go out the other way every month whilst these people struggle to find work.
The government need to act now, decicivly and quickly. Such a move will save the small business economy, save jobs and stop a recession becoming a depresion.

LA will make his point, but is not holding his breath.