MESSAGE FROM KIM HOWELLS MP, PARLIAMENTARY UNDER SECRETARY OF STATE FOR CONSUMERS AND CORPORATE AFFAIRS, TO INSOLVENCY SERVICE STAFF

I wrote to you on 16 May at the beginning of the Quinquennial Review of the Insolvency Service.  Stage 1 of the Review has now been completed. The Secretary of State has announced the main conclusions and recommendations in Parliament today. His announcement is attached to this letter.

Stage 1 of the Review considered options for the delivery of The Service’s functions.  I am pleased to say that the Review concluded that the Insolvency Service is customer focussed and confirmed that the standard of The Service’s work has improved significantly over the past five years. Your work is well regarded. 

The Review also concluded that the current functions of The Service form a coherent block that benefit from being managed as a whole and that The Service should continue as an Executive Agency of the DTI.

Customer needs and continuing efficiency remain priorities for The Service and will be taken forward in response to the Government’s modernising agenda. The Review supports The Service in meeting these objectives by making recommendations relating to options for funding, benchmarking, selective tendering, reorganisation, and clarifying its advisory role.

The Review Team is now starting work on Stage 2.  In this they will be considering whether there should be any changes to the way The Insolvency Service operates, including its aims objectives, targets and financial controls.  The Review will consider in more detail other issues identified in Stage 1.  Stage 2 of the Review will be completed by the Spring. I will ensure you are informed of its conclusions as soon as possible.

Lastly, I want to use this opportunity to thank all staff and Trade Unions of the Insolvency Service for their co-operation during Stage 1 of the Review.  I know that the Review Team found your constructive approach to the exercise invaluable.

KIM HOWELLS MP