A review of priorities at the Department for Business and Trade agency found the scheme should be parked because of ‘changing user requirements’ and a ‘revaluation of the original benefits’

The Insolvency Service has effectively set aside £600,000 of capital spending that was directed at designing and developing a new digital portal to support aspects of its work.

PublicTechnology understands that the write-down relates to a contract with Netcompany UK.

INSS – as the Insolvency Service is known for short – is an executive agency of the Department for Business and Trade. It is responsible for administering bankruptcies and debt-relief orders, and for issuing redundancy payments from the National Insurance Fund. The service also looks into the affairs of companies in liquidation, making reports on director misconduct and working to disqualify directors when there is evidence of wrongdoing.

The DBT annual report and accounts for 2024-25, which was published earlier this month, details capital spending on the design and development of the portal in 2022-23 and 2023-24 under the heading “constructive loss”.

It says that the digital portal was expected to support the Report to Creditors and Proof of Debt processes, but that the project is not currently being progressed.

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“Following a recent review of priorities within Insolvency Service, including the evolving technical landscape, changing user requirements and a revaluation of the original benefits, it was agreed that the most appropriate accounting treatment at this stage is to impair the full value,” the DBT annual report and accounts states. “This approach ensures compliance with financial reporting standards whilst also preserving future flexibility.”

It adds: “Should elements of the work be taken forward at a later date, a proportional reversal of the impairment may be applied. The work completed has provided valuable design insight that can inform and accelerate future service development.”

An INSS spokesperson said that, despite the references to impairment in the DBT annual report and accounts, the project had not been discarded and an assessment would be made on “potential reuse”.

“The original project planned to digitise key processes for those who use our services regularly, such as creditors,” they said.  “However, following a review at an early stage, it was not yet able to be integrated into our key systems. We are now using learning from this work, so that it is not wasted, and taking it into future digital services.”