Mention the word “haven” and beachside tax hotspots such as Bermuda or the Cayman Islands come to mind. Oddly, in an economic downturn, Britain may become a new type of haven – for bankrupts. UK insolvency laws make it one of Europe’s most attractive places to restructure debts. As rules across the European Union are inconsistent, so-called “forum shopping” may become more common.

The benefits are clear. In the UK, unlike many other EU countries, strained companies need only the support of three-quarters of creditors to restructure debts. Unless remaining creditors can prove unfair treatment, their grumbling leads nowhere. British courts also prefer a clean break; in France, insolvency proceedings can drag on for years. British flexibility does not match that in the US. Chapter 11 rules there allow managements to remain in charge rather than administrators. But David Cameron, the Conservative leader, has suggested similar measures for the UK.