§ Mr. LawsTo ask the Chancellor of the Exchequer what his latest estimate is of the annual revenue cost of removing the Crown's preferential right to recover unpaid taxes, in each year from 2001–02 to 2005–06; and if he will make a statement. [130122]
§ Dawn PrimaroloThe latest estimate of the annual revenue cost of removing the Crown's preferential rights in respects of taxes etc in insolvencies is:
£ million 2001–02 nil 2002–03 10 2003–04 65 2004–05 70 2005–06 70 Removal of Crown preference was one of a number of measures introduced in the Enterprise Act 2002 to make the insolvency regime more supportive of enterprise, and is designed to bring real benefits to unsecured creditors, including many small firms.