The Inland Revenue say that Town may not be able to cut a deal over their tax bill. The new Enterprise Act, which becomes law in April, will mean the tax authorities will no longer be treated as preferential creditors but as unsecured creditors of companies in administration.

Town chairman David Sheepshanks said two weeks ago that in the light of the new tax law the club were hopeful of coming to an agreement with the tax authorities. Leicester City recently came to an arrangement which seen to have set a precendent for clubs going into administration.

A spokesperson for the Inland Revenue says that each case is taken on its own merits: "Leicester City was in receivership, which is a different case to Ipswich anyway, but Leicester made arrangements with us to pay what they could. We could expect any company or individual to contact us if they find themselves in difficulty.

"We're not in business to put people out of business and are always happy to try and come to mutual arrangements with anyone over their tax bill."

Yesterday, Ipswich MP Chris Mole said he would give the club any help he could in coming to an arrangement with the Inland Revenue.

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