As well as the previously published code of practice which was designed to encourage commercial tenants and landlords to work together to protect viable businesses, the Government has now launched a consultation and call for evidence. Clearly the code of practice on its own is not enough to deal with the situation, and this consultation will support the Government’s decision making on the best way to withdraw or replace the current measures while preserving tenant businesses and the millions of jobs that they support.
If there is evidence that productive discussions between landlords and tenants are not taking place, and that this represents a substantial and ongoing threat to jobs and livelihoods, the government will not hesitate to intervene further.
The measures which are the subject of this call for evidence are:
- the moratorium on commercial lease evictions established by section 82 of the Coronavirus Act 2020; and
- the restrictions on the use of Commercial Rent Arrears Recovery (CRAR) established by the Taking Control of Goods (Amendment)(Coronavirus) Regulations 2021.
Protections from forfeiture for non-payment of rent for business tenancies are in place in England until 30 June 2021. The Government aims to understand how landlords and tenants are responding to the build-up of rent arrears that has occurred due to businesses being unable to trade normally during the pandemic. The evidence received will inform government policy.
The Government is not specifically considering the restrictions on the use of winding-up petitions and statutory demands established by section 41(1)(b) of the Corporate Insolvency and Governance Act 2020 in this call for evidence. However, it is interested in the length of time for which these measures should be in place and how they relate to the measures which are the subject of this call for evidence.
The call for evidence closed on 4 May 2021.
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