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The UK Insolvency Service has launched a bold five-year strategy aimed at expanding its enforcement powers, tackling economic crime, and increasing director accountability.
The Insolvency Service has unveiled a sweeping new five-year strategy that signals a fundamental evolution in its role from an insolvency-focused regulator to a central pillar in the UK’s fight against economic crime.
With fraud now the most commonly reported crime in the UK, the Service’s 2026–2031 Investigations and Enforcement Strategy lays out a clear and ambitious roadmap. The strategy outlines an expanded role for the agency, including increased enforcement powers, use of data analytics and technology, and closer collaboration with other government bodies.
Traditionally viewed as a body focused on liquidations and disqualifications, the Insolvency Service is expanding its scope. Its new strategic priorities emphasise criminal enforcement, asset recovery, and fraud prevention, particularly in areas of systemic abuse, such as Covid-19 Bounce Back Loan Scheme fraud and the misuse of corporate entities as vehicles for laundering money.
What’s changing?
The strategy follows a period of heightened enforcement activity. In the 2024–25 financial year, the Insolvency Service:
The strategy sets targets to expand enforcement activities over the next 5 years.
One of the central themes of the strategy is restoring confidence in the UK’s corporate ecosystem. The Service will play a more prominent role in deterring misconduct, ensuring directors understand the consequences of non-compliance and that victims of economic crime see accountability in action.
This aligns with the government’s broader ambitions to make the UK one of the safest places in the world to do business, especially in the wake of recent reforms at Companies House and increased scrutiny on shell companies and nominee directors.
The strategy doesn’t just address known threats; it also anticipates emerging ones. The Service is investing in expertise to handle:
With specialist teams and better intelligence-sharing frameworks, it aims to disrupt criminal networks before damage is done, moving from reactive to preventative enforcement.
Perhaps most significantly, the strategy emphasises inter-agency collaboration. It recognises that no single authority can tackle complex fraud alone. The Insolvency Service will work closely with other government bodies, using shared data, joint investigations, and aligned enforcement tactics to deliver faster, more effective outcomes.
As someone who’s worked in risk management and investigations for over 3 decades, I see the 2026–2031 Investigations and Enforcement Strategy as a major turning point in the UK’s approach to corporate oversight.
For risk professionals, compliance leaders, and directors, the implications are clear: regulators will expect more transparency, better governance, and faster responses to warning signs of misconduct.
This introduces both challenges and opportunities; increased scrutiny, a more aggressive enforcement posture, and expanded data surveillance mean businesses must take internal controls more seriously than ever. At the same time, the strategy promises a fairer marketplace, where those who follow the rules are no longer undercut by fraudsters operating with impunity.
At ESA Risk, we’ll be tracking how this strategy plays out in practice, how cases are investigated, which industries come under the spotlight, and what risk professionals can do to stay ahead.
If you suspect that a fraud has occurred within your business and need advice or support on the next steps, we’re here to help.
Contact us at advice@esarisk.com, on +44 (0)343 515 8686 or via our contact form to find out more.
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