Overview

This bill amends the Commercial Rent (Coronavirus) Bill, clarifying definitions, extending the time for arbitration, providing relief for tenants from rent debts, and allowing for adjustments to the moratorium period for rent payments in England and Wales. It ensures that protections are applied consistently across both countries, considers the impact of business closures due to coronavirus, and clarifies the responsibilities of guarantors and other parties liable for rent.

Description

The amendments make several key changes: Firstly, it explicitly defines "English business tenancy" and "Welsh business tenancy". Secondly, it broadens the scope of protected businesses or premises to include those of a "specified description". The timeframe for referring rent disputes to arbitration is extended and clarified for both English and Welsh businesses. The bill introduces provisions to protect tenants from rent debts through arbitration awards, which would also shield guarantors and other liable parties from related costs. The ability for the Secretary of State to extend the moratorium on rent payments is also expanded, with the added requirement of Welsh Ministerial consent for specific provisions relating to Wales. The bill also clarifies which businesses are considered adversely affected by Covid-19 related closures, including premises or parts of premises that were subject to closure requirements after August 7th, 2021. Finally, the amendments grant concurrent powers to the Welsh Ministers to re-apply moratorium provisions, ensuring alignment in how these measures are implemented in Wales.

Government Spending

The bill doesn't directly specify government spending figures. However, the extension of the rent moratorium and the potential arbitration awards could lead to increased government expenditure if the government chooses to implement measures to support businesses struggling with rent arrears. The financial implications depend on the number of successful arbitration claims and the overall length of the extended moratorium.

Groups Affected

• Businesses renting commercial premises in England and Wales: They will be impacted by the extensions to the moratorium on rent and arbitration processes. Some will benefit from rent debt relief.
• Landlords of commercial properties in England and Wales: They will be affected by the extended moratorium and arbitration processes, potentially delaying rent payments.
• Guarantors of commercial leases: These individuals or entities will be shielded from liability for rent written off in arbitration.
• Other parties liable for rent (e.g., on an indemnity basis): Similar to guarantors, these parties will also be protected from liability for written-off rent.
• The UK and Welsh Governments: They will have responsibilities for implementing and administering the changes, potentially incurring administrative costs.

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