MPs back tough fines to avoid repeat of BHS '˜disaster'

Bosses should face 'nuclear deterrent' punitive fines for avoiding pension responsibilities to avoid a BHS-style 'disaster' happening again, an influential group of MPs has said.

The House of Commons work and pensions committee said stronger regulatory powers would give Sir Philip Green more incentive to make good on his promise to “sort” the £571 million BHS pension fund black hole. Sir Philip is thought to have offered £250m to help plug the deficit, £100m less than the Pensions Regulator demanded.

But the MPs said the regulator should have the power to impose fines that could treble the amount payable towards covering a pension scheme deficit. That would mean it could threaten Sir Philip with a fine of up to £1 billion unless he paid his contribution.