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LATEST NEWS & EVENTS Time to Pay may see corporate insolvency rate rise  Squeezing the Time to Pay facility could see the corporate insolvency rate in the UK increase, according to trade body R3. A third (29 per cent) of insolvencies experts reckon that changes to the facility would be the most harmful thing for small businesses in 2011. Public sector cutbacks and a modest interest rate rise are the next two biggest dangers facing small companies, each polling 23 per cent. R3 President Steven Law commented "Our members have seen how invaluable the Time to Pay scheme has been to businesses. "We believe that it is important that it remains available as a breathing space for viable businesses, but that it is not used as an alternative credit facility for zombie companies." The survey also found that the construction industry will be the hardest hit, with 48 per cent of experts agreeing that this sector will absorb the bulk of the public spending cuts. Syscap reported earlier this month that HM Revenue and Customs figures show it is becoming harder for businesses to defer tax payments through the scheme. Commenting on the R3 survey, head of business recovery and insolvency at Lamport Bassit Rick Munro said: "There is no doubt that the Time to Pay initiative has kept alive many business that would otherwise have gone to the wall and that its withdrawal is likely to have a significant impact on the rate of corporate failures next year." Posted by Gaby Hamerton 
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