Yahoo Finance UK hospitality businesses welcome evictions ban over rental debt
The government’s announcement that business owners affected by the coronavirus pandemic will be protected from eviction until the end of March 2021 was welcomed by the hospitality industry, although it warned that more will need to be done.
The move “will help avoid an immediate bloodbath of business failures across hospitality, but it must be accompanied by support to resolve COVID-related rent debt,” UKHospitality said.
CEO, Kate Nicholls, said: “This is a very welcome respite and it will be crucial in ensuring that more businesses do not fall off an immediate cliff edge.”
But she said “it is absolutely crucial” that the government develops “a cohesive and comprehensive package of recovery measures. The focus now needs to turn to helping businesses begin to get back towards full strength and trade their way out of danger.”
She said an extension to the business rates holiday and VAT cut “are a must,” alongside loans to tenants where landlords have provided rent concessions.
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The government meanwhile has said “this final extension” will give landlords and tenants three months to come to an agreement on unpaid rent.
“There is still some uncertainty ahead,” it warned in a statement, but added that “knowing that they won’t be evicted by their landlord will give thousands of business owners some breathing space and the additional confidence they need to plan for their futures.”
It also said the move “is in addition to putting in place one of the world’s most comprehensive economic responses to protect jobs, incomes, and business throughout and beyond this pandemic.”
The government stressed that where businesses can pay any or all of their rent, they should do so.
Overall the government said it has has committed a package of over £280bn ($377bn) of support for businesses and employees this year and chancellor Rishi Sunak has confirmed an additional £55bn for next year.
Housing secretary Robert Jenrick said: “We are witnessing a profound adjustment in commercial property. It is critical that landlords and tenants across the country use the coming months to reach agreements on rent wherever possible and enable viable businesses to continue to operate.”
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