§ Mr. BrazierTo ask the Secretary of State for Trade and Industry what changes are planned to the financial regime under which Companies House operates.
§ Mr. RedwoodCompanies House currently operates on a net running cost regime. Although this makes it possible to match resources to fluctuations in workload, it does not enable the agency to work in a fully commercial manner. For example, there are restrictions on transferring funds between financial years.
Companies House plans to take advantage of the greater financial flexibilities which should be available as a trading fund under the Government Trading Act 1990. The aim is to enable the agency to operate more efficiently, so that its many customers can enjoy an even better service representing improved value for money. I hope that Companies House will achieve trading fund status later in 1991–92, as described in the trade and industry expenditure plans report (Cm 1504) published this week.
Companies House is today issuing a consultative letter on these proposals, seeking comments by 12 April. A copy of this letter will be placed in the House of Commons Library.