Ban on business evictions set to be extended until 2022 Business News

The government is expected to extend the ban on evicting businesses from their premises after a backlash against continuing Covid restrictions.

The ban on trade evictions is expected to end on June 30, but ministers will announce on Wednesday that it will be extended until 2022, according to reports.

Steve Barclay, Chief Secretary of the Treasury, will announce that the moratorium will last for an additional nine months, on Financial Time reported.

Existing debts accumulated during the crisis will be “locked in” to protect troubled tenants, the newspaper reported.

A new arbitration mechanism will be introduced to help tenants and landlords resolve disputes over these bad debts.

Retail and hospitality industry groups warned last week that both sectors have racked up £ 5bn in rent arrears as many businesses are still operating well below target levels ‘before the pandemic.

Following Boris Johnson’s announcement on changes to easing lockdown measures, more than 1,100 nightclubs across the country will remain closed until at least July 19, a month beyond a scheduled reopening June 21st.

Pubs and restaurants must also pursue social distancing measures that reduce capacity and mean some places are in deficit.

The hotel companies had asked for additional financial support to compensate for the loss of business. But the chancellor refused to extend the leave scheme or reduce the contributions that companies must make to the salaries of staff on leave.

There are fears that thousands of businesses could be evicted once landlords are able to sue them for rent debts accumulated during the pandemic.

A further extension of the moratorium on commercial rents is likely to anger business landlords who have seen their rent receipts plummet since March of last year.

In the first quarter of this year, only 74 percent of rents were collected by landlords within 60 days of their due date.

In April, the government called for testimony on how it can deal with the problem of commercial rent arrears when the current moratorium ends.

The Prime Minister’s official spokesperson said: “We are considering responses to a recent call for evidence on next steps with commercial rent and will define our response shortly.”

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This notice was published: 2021-06-16 11:09:08

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