With the latest lockdown affecting many businesses, a ban on business evictions will help those impacted to keep trading until March 2021. However, does this ban go far enough?
Communities Secretary Robert Jenrick announced in December 2020 that business owners affected by the pandemic will be protected from eviction until March 2021. This final extension will give landlords and tenants time to come to an agreement over any unpaid rent.
The Government have also announced a review of the outdated commercial landlord and tenant legislation. They will look at improvements to the leasing process and addressing issues to ensure our high streets can survive and grow beyond the pandemic.
There have been a variety of support schemes for businesses announced from VAT deferral, various grants and loans, the furlough scheme and business rates relief.
With rent being one of the biggest costs to businesses and many facing closure and restrictions until March 2021, how will businesses find the funds to pay any rent due after March?
The new few months will be the toughest test, especially for those in the hospitality and retail industry. Many schemes will come to an end and some of these businesses will have built up debt with no way of paying it back. The end of furlough will also see these businesses struggling to pay their employees.
Sean Daniel, Managing Director said “The Government have provided an unprecedented level of support to businesses during the pandemic. Banning business evictions until March 2021 will help some businesses to continue but with the recent lockdown still in place, is this enough time to ensure they can pay any rent arrears?”.
Clear Vision Financial Management are a team of accountants based in Romsey and Poole, if you would like any advice on funding, or any of the issues in this post please do get in touch. You can call us on 01794 330025 or email us.