Liberal Democrats

The language of insolvency: why getting it wrong can harm struggling firms

Retrieved on: 
Tuesday, April 23, 2024

But since the 1980s, the UK has made it a priority to throw a lifeline to struggling companies.

Key Points: 
  • But since the 1980s, the UK has made it a priority to throw a lifeline to struggling companies.
  • It appears, however, that these efforts to enhance the law are being hampered by sloppy language in the media, increasing the stigma around insolvency and potentially deterring businesses from seeking help.
  • So what is the correct language to use when we’re discussing insolvency?

Corporate insolvency law

  • They are found in the Insolvency Act 1986 (liquidation, administration, company voluntary arrangements (CVAs) and standalone moratoriums) and in the Companies Act 2006 (schemes of arrangement and restructuring plans).
  • The liquidator then distributes the value of the assets among the creditors of the company in a ranked order, known as the “insolvency waterfall”.
  • It is a voluntary arrangement between the company and its creditors, supervised and approved by an insolvency practitioner (that is, someone who is licensed to act on behalf of an insolvent company).
  • For example, after calling in administrators earlier this year, The Body Shop is now thought to be seeking a CVA.
  • Directors are given 20 business days to assess their rescue and recovery options.
  • The scheme of arrangement, regulated by the Companies Act 2006, is a procedure available to companies that are not yet insolvent.
  • Think of it as something akin to an individual consolidating their credit cards, or arranging a plan to repay arrears.

The reality of corporate insolvency

  • Clearly, the legislative priority in the UK over the past 40 years has been to promote corporate rescue and renewal.
  • This should, in principle, be particularly useful to British businesses at a time when the UK has seen a record number of business failures, with no fewer than 26,595 corporate insolvencies in 2023.
  • That figure is 14% higher than in 2022 and 43% higher than pre-pandemic levels in 2019.
  • With an increasing number of companies in financial difficulty, we might have expected that corporate rescue cases would have risen too.


The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

Party conference season is here – but decades of polling evidence suggests these events barely move the dial

Retrieved on: 
Monday, October 2, 2023

She argues that party conferences are central to the life of political parties.

Key Points: 
  • She argues that party conferences are central to the life of political parties.
  • The ritualistic standing ovations given to the leader’s speech is very much the centrepiece of contemporary party conferences.
  • One way of answering this question is to look at voting intentions for the parties measured before and after the party conference season.
  • If a conference is reported to be a success, then voting intentions for the party in the polls should improve.
  • After losing the general election in 1959, the Labour party conference in 1960 was a picture of disunity.

Is anyone listening?

    • The average voting intentions for the Conservatives across the years was 38%, for Labour 42%, and for the Liberals and subsequently the Liberal Democrats 14% – both in August and October.
    • Perhaps sensing the theatrical nature of the exercise, they are primed to ignore or discount much of what happens.
    • Ireland’s Citizens’ Assembly, for example, broke the deadlock on the question of abortion and triggered a constitutional change.

Voice support slips again in national Resolve poll; massive swing in WA puts Libs ahead

Retrieved on: 
Tuesday, July 25, 2023

Here is an updated graph of the 2023 Voice polls by pollster that I first published two weeks ago.

Key Points: 
  • Here is an updated graph of the 2023 Voice polls by pollster that I first published two weeks ago.
  • To be successful, a referendum requires at least four of the six states as well as a national majority in favour.
  • Based on June and July Resolve polls from a combined sample of 3,216, “no” is now ahead in four states.
  • On Australia’s level of support, 45% thought it should be maintained, 31% increased and 9% decreased or withdrawn.

National Essential poll: Albanese’s ratings slump

    • This is Labor’s equal lowest lead in Essential this term, tying with a 49–44 lead in March.
    • Anthony Albanese’s ratings were 48% approve (down six since May) and 41% disapprove (up six), for a net approval of +7, down 12 points.
    • This is his worst net approval in Essential since the 2022 election.

WA poll: massive swing to Liberals since May puts them ahead

    • The Liberals led by 54–46, a huge 15-point swing to the Liberals since the May Utting poll that was taken soon after Mark McGowan announced his retirement as WA premier and member for Rockingham.
    • Primary votes in this poll were 37% Liberals (up nine), 6% Nationals (up one), 32% Labor (down 20), 10% Greens (up two) and 15% for all Others (up eight).
    • At the March 2021 WA election, McGowan won Rockingham by an 87.7–12.3 margin, from a primary vote of 82.8%.
    • If this WA state poll is accurate, we would expect a huge swing to the Liberals at the byelection.

Tories lose 2 of 3 UK byelections; right fails to win majority in Spain

    • The Conservatives lost two with very large swings, to Labour and the Liberal Democrats, but held former PM Boris Johnson’s former seat of Uxbridge.
    • The right had been expected to win an outright majority.

Byelection losses are terrible for the Conservatives – but there are glimmers of hope

Retrieved on: 
Friday, July 21, 2023

The unpopularity of London Labour Mayor’s Sadiq Khan’s expansion of the ultra low emissions zone (Ulez) undoubtedly contributed to the Conservative defence of Uxbridge.

Key Points: 
  • The unpopularity of London Labour Mayor’s Sadiq Khan’s expansion of the ultra low emissions zone (Ulez) undoubtedly contributed to the Conservative defence of Uxbridge.
  • But the party’s losses in Somerton and Frome in Somerset, and Selby and Ainsty in North Yorkshire, are notable.
  • Read more:
    Boris Johnson resignation: why Rishi Sunak can't afford to lose more than one of three impending byelections

Historic Labour win

    • Selby and Ainsty was the Conservatives’ second byelection loss to Labour during this term, and it was significant.
    • The result was worse for the Conservatives than their previous loss to Keir Starmer’s party in Wakefield.
    • That saw “only” a 12.6% swing to Labour, barely guaranteed to give the opposition an overall majority.

Echoes from history

    • This is all reminiscent of when the Conservatives last crashed out of office in 1997.
    • During the 1992-97 parliament, the Conservatives lost all eight seats they defended in byelections: four to the Liberal Democrats, three to Labour and one to the SNP.
    • For a while, some clung to the hope that Sunak and Starmer’s popularity ratings were close enough to give them a chance.

What the future holds for the Conservatives

    • Under the Recall of MPs Act, only 10% of constituents need to sign a petition to generate the contest.
    • An autumn byelection would be most unwelcome for a Conservative Party attempting a relaunch at its conference in Manchester in October.
    • And at some point, Nadine Dorries will end the longest resignation in political history and step down from her Mid-Bedfordshire seat.
    • Two is that the Conservatives have one final budget with which to put more money in people’s pockets.

Voters want compromise in Congress -- so why the brinkmanship over the debt ceiling?

Retrieved on: 
Saturday, May 27, 2023

There’s no progress.

Key Points: 
  • There’s no progress.
  • Much of the breathless news coverage of the debt limit crisis relies on leaks, speculation, wishful thinking and maybe even the reading of tea leaves.
  • Harbridge-Yong is a specialist in partisan conflict and the lack of bipartisan agreement in American politics, so her expertise is tailor-made for the moment.

What do the debt limit negotiations look like to you?

    • The first: Since the 1970s, both the House and Senate have become much more polarized.
    • Members of the two parties are more unified internally and further apart from the opposing party.
    • You don’t have the overlap between parties now that existed 50 years ago.
    • These dynamics, layered on top of policy interests, all contribute to the problems that we’re seeing now.

What’s the role of brinkmanship in this conflict?


    When I think of brinkmanship, I’m thinking about negotiating tactics that push things until the very last minute to try to secure the most concessions for your side. Right now that means coming to the edge of potential default on the debt.

Does brinkmanship work?

    • In some instances concessions were granted, so brinkmanship paid off.
    • Brinkmanship and gridlock are disproportionately consequential for Democrats, who generally want to expand government programs, versus for Republicans, who tend to want to constrict government programs.
    • It may be part of why we see Republicans going harder on this kind of brinkmanship.

How does the public see brinkmanship?

    • My own work has shown that the public does not like gridlock on issues in which people agree on the end goal.
    • The public, on average, even prefers a victory for the other side over policy gridlock.
    • So on the one hand, the public doesn’t like gridlock – especially gridlock when the consequences are so bad, as default would be.

Democracy is about representation. As they conduct these negotiations, do lawmakers see themselves as representing voters?

    • They represent very strongly partisan districts who may agree with them that they need to fight for concessions.
    • Individual legislators may be thinking they’re representing constituents, but that leads to an aggregate that is not representative of the country as a whole.
    • What the public as a whole – which tends to be more moderate – wants is compromise and resolution of this issue.

Local elections: Labour gains suggest the tide has turned in many marginal constituencies

Retrieved on: 
Friday, May 5, 2023

These votes are of course shaped by local issues but national influences are never far away.

Key Points: 
  • These votes are of course shaped by local issues but national influences are never far away.
  • But its performance does not necessarily indicate that it is doing well enough to win outright at the next general election.
  • On the downside for Labour, it failed to take control of other target councils, namely Peterborough, Bolton, Worcester and Hartlepool.
  • Gains made by the Liberal Democrats might not equate to Labour success but they do indicate the potential for Conservative failure.

Local elections: what does a good night look like for Keir Starmer's Labour or Rishi Sunak's Conservatives?

Retrieved on: 
Tuesday, May 2, 2023

These are huge contests, covering 237 councils, of which 151 are holding all-out elections, with every seat up for grabs.

Key Points: 
  • These are huge contests, covering 237 councils, of which 151 are holding all-out elections, with every seat up for grabs.
  • In the other 86, one-third of the seats are being fought.
  • The Conservatives have most to lose since the poll includes “shire” councils in rural locations, which are traditionally fertile Tory territory.

What does a good night look like?

    • Theresa May was prime minister and was battling to get her Brexit deal through parliament after losing her majority in an ill-fated election two years previously.
    • Starmer needs a swing the size of Tony Blair’s in 1997 to win an outright majority in the next general election.
    • For the Conservatives, keeping losses well below 700 seats would be a triumph of sorts, an indication Rishi Sunak is still in the game.

Which are the regions to look out for?

    • Labour could regain northern councils that had been lost to no overall control in places where the party has also lost parliamentary seats in recent years.
    • This could indicate a fight back in the areas that delivered such a devastating loss for Labour in the last general election.
    • Look out for Dacorum, West Berkshire and East Cambridgeshire councils which could all fall to Ed Davey’s party.

Will voter ID change things?

    • The Electoral Reform Society thinks it has been introduced to solve a problem of impersonation that does not exist.
    • Take up for voter authority certificates, available to those not holding appropriate ID, has been low.
    • That’s unless you think bins, burials, green spaces, housing, leisure facilities, libraries, planning, schools and social services are all trivial.

Labor gains in Newspoll but Voice support slumps in other polls; NSW final results and Queensland polls

Retrieved on: 
Sunday, April 23, 2023

Despite Labor’s gain on voting intentions, Prime Minister Anthony Albanese’s net approval dropped five points to +16, with 53% satisfied (down three) and 37% dissatisfied (up two).

Key Points: 
  • Despite Labor’s gain on voting intentions, Prime Minister Anthony Albanese’s net approval dropped five points to +16, with 53% satisfied (down three) and 37% dissatisfied (up two).
  • Two polls below show support for the Indigenous Voice to parliament slumping since December, but Essential and Resolve polls last week had the Voice’s support slightly up since March.
  • Read more:
    Voice support increases in Essential and Resolve polls

Resolve poll gives Labor massive lead

    • Resolve does not give a two party estimate until close to elections, but applying 2022 election preferences to these primary votes gives Labor over a 61-39 lead, a two-point gain for Labor since March.
    • Resolve has been the most pro-Labor regular pollster since the last federal election.
    • Labor widened its lead on economic management over the Liberals to 36-30 from 33-32 in March.

Support for Voice slumps in Morgan and Freshwater polls

    • This is the narrowest lead for “yes” in any Voice poll.
    • Other polls, like Essential which gave “yes” a 60-40 lead last week, have had high levels of Coalition support; Essential had 41% of Coalition voters supporting “yes”.

NSW upper house final result: 21-21 tie between left and right

    • The New South Wales upper house has 42 members, with 21 up for election every four years, so members serve eight-year terms.
    • At last Wednesday’s distribution of preferences, the Coalition’s seventh candidate defeated Animal Justice by over 10,000 votes or 0.05 quotas to win the 21st and final seat.
    • So the overall upper house is tied 21-21 between left and right.
    • The president of the NSW upper house does not vote except to break ties.

LNP takes lead in a Queensland state poll

    • A YouGov poll for The Courier Mail, conducted March 30 to April 5 from a sample of 1,015, gave the LNP a 51-49 lead, a one-point gain for the LNP since December.
    • Premier Annastacia Palaszczuk’s lead over LNP leader David Crisafulli as preferred premier slumped to 31-29 from 39-28 in December.
    • Fieldwork for the Resolve poll began in January, and Resolve’s federal and state polls have generally shown a pro-Labor skew relative to other polls.

To understand American politics, you need to move beyond left and right

Retrieved on: 
Wednesday, April 19, 2023

But this animosity seems to have more to do with tribal loyalty than liberal-versus-conservative disagreements about policy.

Key Points: 
  • But this animosity seems to have more to do with tribal loyalty than liberal-versus-conservative disagreements about policy.
  • Liberal Democrats are on the left, conservative Republicans on the right, and a small sliver of moderate independents are in the middle.
  • But political scientists like us have long argued that a line is a bad metaphor for how Americans think about politics.
  • Recently, some political scientists have argued that views on racial issues represent a third “dimension” in American politics.

A new picture of American politics

    • In our new article in Sociological Inquiry, we analyzed public opinion data from 2004 to 2020 to develop a more nuanced picture of American political attitudes.
    • Our aim was to do a better job of figuring out what Americans actually think about politics, including policies related to race and racism.
    • Many have very strong views on certain issues, but can’t be pigeonholed as being on the left or right in general.
    • Picture, for instance, those voters in 2016 who were attracted to both Bernie Sanders’ economic populism and Donald Trump’s attacks on immigrants.

Five groups – but only two parties

    • These three groups of Americans have a difficult time fitting in with either of the two major parties in the U.S.
    • Seeing Americans as divided into these five groups – as opposed to polarized between the left and right – shows that both political parties are competing for coalitions of voters with different combinations of views.
    • But perhaps most importantly, these five groups show how diverse Americans’ political attitudes really are.

Voice support increases in Essential and Resolve polls

Retrieved on: 
Wednesday, April 19, 2023

In the latest Essential poll, support for the Aboriginal and Torres Strait Islander Voice to parliament increased slightly to 60-40, from 59-41 in March.

Key Points: 
  • In the latest Essential poll, support for the Aboriginal and Torres Strait Islander Voice to parliament increased slightly to 60-40, from 59-41 in March.
  • But hard “no” support was up two to 26%, soft “no” was down three to 14%, while 27% remained soft “yes” supporters.
  • For the first time, Essential included an approval question on Dutton, finding him at 44% disapproval, 36% approval.

Resolve poll: Voice support at 58-42

    • Voters supported the Voice by 58-42 when asked to choose “yes” or “no” with no option for undecided, as part of a Resolve poll for Nine newspapers conducted April 12-16 from a sample of 1,600 people.
    • Support was up one point from 57-43 in March.

Morgan poll: 56-44 to Labor


    A Morgan poll, conducted April 10-16, gave Labor a 56-44 lead. This was unchanged from the previous week but a 1.5-point gain for Labor since last fortnight. Primary votes were 37% Labor, 33% Coalition, 12% Greens and 18% for all others.

Newspoll Voice survey over three months

    • The Poll Bludger reported on April 5 that aggregate data from three Newspoll surveys on the Voice to parliament, conducted between February and April, gave “yes” to the Voice an overall 54-38 lead.
    • The number of people polled per state ranged from 334 in Tasmania to 1,414 in NSW.
    • Newspoll has also released its voting intentions demographic data from February to April.

Animal Justice now a good chance to win final NSW upper house seat

    • The NSW upper house has 42 members, with 21 up for election every four years, so members serve eight-year terms.
    • With the NSW upper house check count complete for the March 25 election, Labor won 8.05 quotas, the Coalition 6.55, the Greens 2.00, One Nation 1.30, Legalise Cannabis 0.81, the Liberal Democrats 0.78, the Shooters 0.69, Animal Justice 0.48 and Elizabeth Farrelly 0.29.
    • Although the final seat is clearly a contest between the Coalition’s seventh candidate and Animal Justice, a few parties will take votes that might otherwise reach the Coalition or Animal Justice.
    • However, Animal Justice won in similar circumstances from just behind on primary votes in both the 2015 and 2019
      elections.
    • A win for Animal Justice would give the left an overall 22-20 majority in the upper house, while a Coalition win would tie it at 21-21.