Overview

This bill amends the Commercial Rent (Coronavirus) Bill, clarifying definitions, extending timeframes for arbitration, and modifying provisions related to rent debt relief and moratorium periods for commercial tenants in England and Wales. It also provides for the Welsh Ministers to have concurrent powers with the UK Secretary of State regarding certain aspects of the bill's application in Wales.

Description

The amendments make several key changes:

• Definitions: Defines "English business tenancy" and "Welsh business tenancy" to ensure clarity.
• Scope of Relief: Broadens the scope of rent relief to include "businesses or premises of a specified description" instead of just premises.
• Arbitration Timeframes: Modifies the time allowed for referring disputes to arbitration, allowing for potential extensions.
• Rent Debt Relief: Clarifies the impact of arbitration awards on rent debt, specifying that rent written off does not constitute a breach of covenant for the tenant, guarantor, or other liable parties. It also treats amounts payable under the award as rent.
• Moratorium Period Extension: Introduces a mechanism for extending the moratorium period via regulations, allowing for flexibility in response to ongoing circumstances.
• Closure Requirements: Defines "closure requirements" as those imposed due to public health responses to the coronavirus pandemic and allows for regulations to address business tenancies adversely affected by these requirements.
• Concurrent Welsh Powers: Grants the Welsh Ministers concurrent powers with the Secretary of State to re-apply certain moratorium provisions in relation to Welsh business tenancies.

Government Spending

The bill doesn't directly specify government spending figures. The impact on government spending is indirect and depends on the level of rent debt relief awarded through arbitration, the duration of any extended moratorium periods, and the use of any new regulations created under the bill. It could lead to increased financial burden on the government if substantial rent debt is written off.

Groups Affected

• Commercial Tenants in England and Wales: May benefit from extended moratorium periods and clearer pathways for rent debt relief.
• Landlords: May experience financial losses due to rent write-offs or delayed payments.
• Guarantors and Other Liable Parties: Will have their liability reduced based on the outcome of arbitration awards.
• Arbitration Institutions: Changes to arbitration procedures may affect their workload and processes.
• Welsh Government: Gains greater control over the application of moratorium provisions in Wales.

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