SHADOW business secretary Ed Miliband has urged the government to extend the suspension of “wrongful trading” rules for company directors or risk seeing a flood of businesses closing before Christmas.

The government’s ending of temporary protection for business owners means they face legal action if they are struggling to stay afloat through the crisis but don’t cease trading, Labour has warned.

Protections against insolvency for businesses have been renewed until December 31, but the suspension of a related rule – the wrongful-trading standard, which requires business directors to cease trading if their company is facing insolvency – has not been renewed and ended on September 30.