Chapter 2 - The Insolvency Service

Chapter 2
DTI and the changing resource requirements of The Service.
The following table shows the financial results and outputs for investigation
and enforcement activity. Results for 2004-05 and 2005-06 cannot, however,
be directly compared with earlier years due to the changes implemented on
1 April 2004:
Disqualifications, Bankruptcy Restrictions
(since 1 April 2004) and statements of
facts
2001-02 2002-03 2003-04 2004-05 2005-06
2,935 2,691 2,313 2,489 3,311
£000 £000 £000 £000 £000
DTI Funding 33,389 34,327 31,732 26,984 31,879
Cost recovery from Disqualified Directors* 5,438 3,883 2,902 2,330 1,862
Investigation & Enforcement Costs** 38,827 38,210 34,634 29,314 33,741
* Cost recoveries from Disqualified Directors have been reducing since the
introduction of a disqualification undertakings procedure introduced in April
2001. An undertaking avoids the need for court proceedings and therefore
eliminates the prospect of an order for costs against the director or The
Service.
** Investigation and Enforcement costs prior to 1 April 2004 included the
costs of DTI prosecution solicitors. These costs are now included in DTI's
accounts (2001-02 £5,772k; 2002-03 £5,279k and 2003-04 £5,355k)
Future Developments
On current known allocated resources we expect to have broadly similar
enforcement outputs in 2006-07 as last year, although we expect the number
of bankruptcy restrictions to significantly exceed the 2005-06 levels.
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