Proposals by the UK Government to further strengthen the Pensions Regulator's powers in corporate takeover deals may unintentionally hinder companies looking to raise debt, pay dividends or refinance themselves, according to the consultancy PricewaterhouseCoopers.

The Department for Work and Pensions yesterday proposed changes that would mean that if a company harms its pension scheme's finances, it could be liable for penalty payments even if it did not intend to.