Covid-19: Economy Update

Lord Taylor of Goss Moor Excerpts

Tuesday 27th October 2020 Lords Chamber

[Lord Agnew of Oulton (Con)]

My Lords, the Job Support Scheme Open is available to all small businesses experiencing difficulties in this crisis. They are eligible for the figures that I gave earlier to the noble Lord, Lord Tunnicliffe, as are large employers of more than 250 employees that can demonstrate a negative impact on their turnover from Covid.

[Lord Taylor of Goss Moor (LD) [V]]

My Lords, the Government have been pretty supportive of retail and other business tenants, with the rates holiday, VAT help, the furlough scheme and the moratorium against enforcement by landlords. I have little doubt that these will be extended for as long as coronavirus issues continue, but have the Government seriously considered how they will be unwound for tenants, in particular the moratorium on rents? As soon as it is lifted, some landlords will seek enormous backdated rents, all owed at once, which themselves would bankrupt businesses that have been unable to trade for a significant period. Either government support or some unwinding of the moratorium is needed to avoid these bankruptcies.

[Lord Agnew of Oulton (Con)]

My Lords, a great deal of thinking is going on, but this matter might be worth some pragmatism. If landlords collectively behaved in the way suggested by the noble Lord, there would be a mass exit from commercial buildings when the point comes. Doing that would surely be shooting themselves in the foot.