The chief executive of Meridian Business Support is urging the Chancellor George Osborne to prevent director and shareholders of companies from benefiting from pre-packs.

Ahead of the Budget tomorrow, Mark Mitchell told Recruiter: “I hate to read about how jobs were saved [in a pre-pack situation]. Behind it sits millions of pounds of unpaid bills to creditors and to the Crown.

“Often owners are paid out on the quiet or through arranged share sales months after the dust has settled. Again, people are robbing their own country. You had a go, it didn’t work. That was your fault, so stand aside and let someone competent run your firm or let the market absorb your business.”

In April 2010, Recruiter reported that at least 14 of the 23 recruitment agencies that went into administration between January and March 2010 were still trading in some form - often with the goodwill and assets of the company having been bought by the original management.

Mitchell also wants the chancellor to close schemes that help firms avoid taxes and other liabilities.

“Some of the UK’s best minds waste their energy creating ways to beat the country’s own rules, and then make a living out of persuading firms and individuals to adopt these often short-term loopholes.

“These individuals and the leaders of the firms that employ them should focus their efforts on creating real wealth and expertise through design, manufacture and export of tangibles.”

And he called on the chancellor to cut and simplify corporation tax, so “we can focus on making profits rather than on schemes to avoid the tax on them”.