UKHospitality welcomes insolvency bill, but says long-term solution on rent needed

UKHospitality has welcomed the progression of a bill to prevent statutory rent demands and winding up orders until 30 June but said that a long-term solution will be needed.

The Corporate Governance and Insolvency Bill was presented to Parliament today, preventing the eviction of commercial tenants unable to pay bills due to Covid-19.

UKHospitality chief executive Kate Nicholls said: "The bill should provide businesses with some very welcome respite from aggressive landlords and valuable breathing space to restructure their businesses. It is very encouraging to see the government listening to the concerns of tenants and landlords, and acting decisively on what is a complex issue.

"It should give some impetus for bringing landlords to the table to understand the pressures that tenants are facing. The majority of landlords have been co-operative, but a minority have aggressively pursued hospitality businesses that are moth-balled, have no revenue and cannot hope to pay. It is also positive to see protection extended to landlords to ensure they are not obliged to pursue tenants.

"Extension of the moratorium would allow more time for businesses and government to get to grips with the scale of the crisis so we can begin to work out long-term solutions to protect local communities. Measures in the bill will provide more breathing space to deliver rent solutions with lower rent liabilities through mandated agreements."

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