LONDON: The government is extending the current moratorium to protect commercial tenants from eviction to next March, a Treasury minister has said.
Steve Barclay told MPs in the Commons the current ban on evictions for unpaid commercial rent would be extended past the end of this month following the delay to easing further coronavirus restrictions.
The ban, which stops landlords from taking tenants with rent arrears to court, was due to end on June 30 but will now be extended to March 25 next year.
Barclay also announced the government would introduce legislation for a new arbitration system to solve disputes between landlords and commercial tenants affected by the coronavirus pandemic.
Giving an economy update in the Commons, Barclay said: “In recognition of the importance of jobs in the many affected businesses at the heart of local communities, we launched a call for evidence in April on further actions to take to resolve those debts.
“As a result of that call for evidence, the government now plans to introduce legislation to support the orderly resolution of these debts that have resulted from Covid-19 business closures.
“We will introduce legislation in this parliamentary session to establish a backstop so that where commercial negotiations between tenants and landlords are not successful, tenants and landlords go into binding arbitration.
“Until that legislation is on the statute book existing measures will remain in place, including extending the current moratorium to protect commercial tenants from eviction to March 25 2022.”
Barclay added: “To be clear, all tenants should start to pay rent again in accordance with the terms of their lease, or asotherwise agreed with their landlord, as soon as restrictions are removed on their sector if they are not already doing so. We believe this strikes the right balance between protecting landlords and supporting those business that are most in need.”
Responding, shadow chancellor Rachel Reeves said: “Of course I welcome what the Chief Secretary has to say today on commercial evictions, but the truth is if the Chancellor believed that this economic package was enough, he would be here announcing it himself because whatever this is, it is not doing whatever it takes to support British businesses and our economy.”
The government is not expected to alter planned changes to the furlough scheme following the delay.
Currently, the state will cover 80 per cent of wages until the end of this month, with this tapering to a 70 per cent subsidy next month with at least 10 per cent covered by employers, and reducing until it is removed at the end of September.
