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Commercial Rent (Coronavirus) Bill - Sitting 2 (Afternoon)

07 December 2021

Proposing MP
Stewart Hosie SNP
Dundee East
Type
Public Bill Committee

At a Glance

Issue Summary

The Committee is discussing whether the protected period for rent debts during and after the pandemic should be extended, particularly considering ongoing disruptions faced by some businesses. The MPs are discussing the Commercial Rent (Coronavirus) Bill and its implementation, focusing on arbitration costs, business viability assessments, and potential ambiguities in coverage. The statement discusses the impact of the Commercial Rent (Coronavirus) Bill on businesses, particularly in terms of legal protections and financial debt. Stewart Hosie concludes the oral evidence session for the Commercial Rent (Coronavirus) Bill committee.

Action Requested

Witnesses suggest that while the current extension may be appropriate, there should be flexibility to adjust based on future uncertainties. They also propose reviewing court judgments made before the November cut-off date to ensure fairness in protection measures.

Key Facts

  • The Committee is examining rent debt protections during and post-pandemic.
  • Andrew Goodacre represents 4,000 members of the British Independent Retailers Association.
  • Martin McTague is vice chair of the Federation of Small Businesses with 150,000 UK-wide members.
  • Arbitrators need knowledge of leases and business viability.
  • The cost of arbitration should be low to prevent barriers for tenants.
  • Cases must be initiated within six months of the Act being passed.
  • Retail businesses may struggle in the coming period, especially around January to March.
  • The Bill needs clarity on covering all businesses contracted out of the Landlord and Tenant Act 1985.
  • Retail, hospitality, and leisure sectors are most affected by the crisis.
  • Smaller businesses tend to respond better to social media campaigns for awareness of arbitration processes.
  • Independent businesses' debt has increased five times since taking out bounce back loans or business interruption loans, totaling approximately £2.2 billion.
  • The session concludes after discussing various aspects of the Commercial Rent (Coronavirus) Bill.
  • The committee will meet again on Thursday, December 9th at 11:30 am in Committee Room 10.
  • No further questions were asked before concluding the oral evidence session.
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