The Insolvency Service has welcomed news in the Budget
that the agency will receive an extra £25 million over the
next five years to help it tackle rogue
directors.
The funding announced by the Chancellor today will fund a
new Abusive Phoenixism Taskforce which will be staffed by 50
people investigating suspicious company insolvencies.
The service's Director of Investigation and Enforcement Services,
Dave Magrath, said:
This is welcome funding which will help the Insolvency Service
tackle rogue directors who abuse the insolvency regime to get out
of repaying their debts and keep assets which are not
theirs.
It will allow us to disqualify more directors who are
not fulfilling their roles responsibly, which will help
us to support legitimate businesses and protect consumers.
The funding will be used to investigate directors who
deliberately liquidate or dissolve their companies to evade tax
and write off their debts through practices such as
abusive phoenixism.
This is part of a wider government crackdown on crime
in the marketplace already underway, including expanding
right to work checks to the gig economy, sub-contracted and
self-employed workers, a crackdown on shops selling counterfeit
tobacco and vapes, and seizing criminal
cash so that it can be reinvested into
communities.
In 2024-25, the Insolvency Service secured 77 criminal
convictions, more than 1,000 director
disqualifications, and wound up 41 companies in the public
interest.
The agency also launched a new five-year investigation and enforcement
strategy in July 2025, with plans to play a more
prominent role in the fight against economic crime and be
recognised as the UK's leading authority in enforcing corporate
and insolvency standards.
