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23 April 2020

Government introduces new measures to protect the UK high street from aggressive rent collection and closure, with businesses asked to pay what they can during the pandemic

Introduced by

Ministry of Housing, Communities and Local Government, Department for Business, Energy & Industrial Strategy

Targeted at

High street shops and other companies under strain

Timings

Announced on 23 April 2020. Temporary ban on the use of statutory demands made between 1 March and 30 June and winding up petitions presented from 27 April to 30 June where a company cannot pay its bills due to COVID-19

Stated aims

To 'safeguard the UK high street against aggressive debt recovery actions during the coronavirus pandemic'

Summary

The government sets out new temporary measures to protect high street shops and other companies under strain from aggressive rent collection, which will be asked to pay what they can during the pandemic. Statutory demands and winding up petitions issued to commercial tenants are to be temporarily voided. The measures will be included in the Corporate Insolvency and Governance Bill. The government is also laying secondary legislation to make changes to the use of Commercial Rent Arrears Recovery (CRAR), to provide tenants with more 'breathing space' to pay rent.

Source(s)

Gov.uk press release