Covid-19: Furloughed Space Grant Scheme

Lord Allen of Kensington Excerpts

Monday 15th June 2020 Lords Chamber

Asked by

[Lord Allen of Kensington]

To ask Her Majesty’s Government what assessment they have made of the proposals by the British Retail Consortium and the British Property Federation for a furloughed space grant scheme during the COVID-19 pandemic.

[Baroness Penn (Con)]

My Lords, the Chancellor has announced unprecedented support for businesses affected by coronavirus, including giving them access to cash to pay their rent, salaries or suppliers. The Government have also taken steps to protect commercial tenants from eviction and are working with the sector to publish a code of practice to guide and encourage all parties to work together to protect viable businesses and ensure a swift recovery. The Government keep all policies under review.

[Lord Allen of Kensington (Lab) [V]]

I thank the Minister for her Answer. However, the code is not cash. It has no teeth. The Government have rightly spent billions furloughing workers, but that money will be money down the drain if they blink now and fail to support businesses who employ such workers; instead, the Government will have to pay many millions in benefits to the burgeoning number of the unemployed. Why not make the grant aid subject to a negotiated settlement between landlords and tenants, based on the code? This would provide valuable support to businesses that are paying and giving what they can afford; it would also encourage others to follow suit and do the same.

[Baroness Penn]

The code is designed to encourage landlords and their tenants to find a solution that works for them both. On cash support, in addition to the Coronavirus Job Retention Scheme and others, we are getting cash directly to businesses, providing business rates relief worth more than £9 billion and providing grants to eligible businesses worth over £10 billion.