Mark Boughey highlighted the controversial nature of Crown Preference, stating it often leaves unsecured creditors, like suppliers, with nothing in insolvency cases.
The reintroduction of Crown Preference has led to concerns about banks reducing lending amounts to businesses and increasing interest rates due to the heightened risk of loan recovery.
Boughey questioned the efficacy of Crown Preference given the modest £14.4 million collected, suggesting diverting funds to other creditors could benefit the broader economy.
Boughey anticipated a significant rise in the money collected through Crown Preference in the future, especially with the recent surge in insolvencies, highlighting potential impacts on creditors.
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