Written Question·Department for Business, Innovation, Science and Trade ·UIN HL2756

Insolvency

Tabled: 23 July 2026

Answered: 3 August 2026

Question

To ask His Majesty's Government, further to the remarks by Lord Leong on 21 July (HL Deb col 1070), what assessment they have made of whether commercial contracts subject to sections 233, 233A and 233B of the Insolvency Act 1986 are treated differently to

Answer

All creditors in an insolvency are treated equally in their class according to a strict statutory priority. Without the provisions in sections 233 to 233B Insolvency Act 1986, essential suppliers could demand payment of existing debt, thereby undermining ...

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