IRC seeks extension to retailer eviction protection in Westminster Hall Debate

IRC member enters debate to seek an extension to the moratorium on evictions within the Coronavirus Act 2020.

The Independent Retailers Confederation (IRC) is a well-established organisation that brings together like-minded trade associations with interests in the small and independent retail sector. It currently represents c.100,000 independent retailers throughout the UK and provides a lobbying platform for increasing the profile and voice of independent retailing within Government and Parliament.

The IRC, led by member The National Hair & Beauty Federation (NHBF), are now calling for a further extension to the Business Tenancies (Extension of Protection from Forfeiture etc.) (Wales) (Coronavirus) (No. 2) Regulations 2020 until the end of the financial year (5 April 2021).

On 23 March 2020, the UK government announced that commercial landlords would be prohibited from forfeiting commercial leases and evicting the tenant for non-payment of rent. This measure was further extended later in the year until 31 December 2020. These measures form part of the emergency Coronavirus Act 2020, enacted on 25 March 2020. 

The measures within the Act have previously been extended through legislation and we now seek a further extension to this.

The key asks are:

• Tenants need protection from eviction in the form of a further extension to the existing moratorium until 5 April 2021 to reflect the continuing uncertainty of this financial year
• Landlords and tenant must be obliged to negotiate before legal action can be taken
• We need some kind of mediation / ADR service to deal with situations that have not been resolved
• Code of conduct does not work and so we need to something stronger, maybe even a legal frameworks

The British Independent Retailers Association has also noted that their own research shows that after 1st lockdown, 24% of businesses did not re-open and this second lockdown could do even more damage because of the importance of this time of year for generating income. Add to this the potential threat of action from a landlord, stock to be paid for (and it may not have been sold), VAT and tax bills, we have a perfect storm of events that we close many perfectly good businesses.

The NHBF believes that extending the current eviction protection for businesses would save business owners from avoidable stress and worry over the Christmas period and beyond. Furthermore, the UK Government is continuing its work with lenders to ensure flexible support is provided to commercial landlords, including payment holidays and restructuring facilities to address and any potentially adverse implications to such an extension.

Independent retailers are the lifeblood of UK high streets, offering specialist products and services, knowledge and passion for their community. The IRC firmly believes that support such as protection from forfeiture during this most difficult period will allow businesses to come out the other side and once again be significant contributors to local economies.

If you have any evidence to contribute towards any of the points made above, please get in contact with us via info@actsmart.biz.