On the go: The Court of Appeal has dismissed ITV's appeal against the Upper Tribunal's decision that a Financial Support Direction should be issued to the broadcaster in relation to the Box Clever scheme.
ITV was appealing a decision made by the Upper Tribunal in June last year, upholding that a Financial Support Direction should be issued by the Pensions Regulator to ITV for the Box Clever scheme, which has a pension deficit of around £115m and about 2,800 members.
“ITV has raised numerous legal challenges against our actions for over seven years in a bid to avoid responsibility for the Box Clever scheme,” said Erica Carroll, the Pensions Regulator's director of enforcement.
Ms Carroll added: “We hope that ITV will finally accept its responsibility and work with us so that a good outcome can be achieved for members."
ITV requested to appeal the decision again at the Supreme Court, the UK’s highest court, but was rejected by the Court of Appeal.
However, an ITV spokesperson said they would be seeking to take the appeal to the Supreme Court directly. “ITV is naturally disappointed with this decision and believes it is unfair,” they said.
“It relates to a legitimate and sensible commercial transaction that was undertaken for the benefit of ITV's shareholders, almost 20 years ago, and, crucially, before the relevant legislation came into force,” they continued.
We hope that ITV will finally accept its responsibility and work with us so that a good outcome can be achieved for members
Erica Carroll, The Pensions Regulator
Box Clever was created as a joint venture, amalgamating the rental businesses of Granada (now ITV) and appliances company Thorn in 2000. It entered administration in 2003.
The pensions watchdog issued five FSDs to companies in the ITV group in 2011.
ITV has argued that, because the episode unfolded prior to the Pensions Act 2004, which introduced TPR’s “moral hazard” powers, the issuance of FSDs was retrospective and therefore invalid.
But the regulator maintains ITV is responsible. “Both the Upper Tribunal and now the Court of Appeal have confirmed that ITV should provide financial support to the scheme,” said Ms Carroll.
She urged ITV to now offer financial support to the scheme.
