Commercial Rent (Coronavirus) Bill — House of Commons, 2022-01-12
Topic: Domestic Commerce
Seema Malhotra-Saluja (Labour, Centre-left): As we move on to Third Reading I would like to thank the Minister for his engagement with us and for meeting us outside the formal Committee and other stages of the Bill. I also thank the Whips on both sides, the civil servants, the Clerks of the House, all those who gave evidence, Parliamentary Private Secretaries and all colleagues who contributed to proceedings on the Bill Labour supports the Bill. Where we believe that it could be further improved we have laid out our arguments, and I hope that such debate will be helpful as the Bill is taken forward in the other place. Labour recognises the need for a fair arbitration system to deal with these difficult rent arrears. No otherwise viable business should face an overwhelming burden from rent arrears incurred as a result of a very difficult time during lockdown and through no fault of their own. Neither should those businesses feel that they are on their own without due arbitration, without a burden-sharing process and without a Government and a Parliament on their side. At the same time, we recognise that commercial landlords also need a clear and predictable mechanism through which to seek to recoup levels of rent arrears fairly, recognising the ability to pay as viable businesses navigate the ups and downs of our economic recovery. Crucially, the guiding mechanism of any arbitration system must ultimately be fairness and must be in the long-term interests of British businesses and jobs. By ensuring that the arbitration process must aim to preserve viable businesses and do so fairly, while also preserving landlords’ solvency, the Bill offers a balanced arbitration process. As such we support it The timing of the Bill, however, was somewhat disappointing, because we called for action over rent debt and wider business costs earlier last summer, ahead of the end of restrictions; indeed, I met with UKHospitality, the British Beauty Council, the Federation of Small Businesses, the Night Time Industries Association and many others. The Minister will have had such meetings too, and heard of the huge ongoing burden that businesses were facing over rent payments; yet it seemed to take the Government months after we, and other stakeholders, made that call to produce the Bill and to set out the arbitration process for rent arrears. In that time, the covid pandemic continued to hit businesses hard, in sometimes predictable and sometimes unpredictable ways as new waves were coming through, particularly those on the frontline of our high streets and communities Rent debt remains a heavy burden for those businesses and their commercial landlords. Indeed, the Bill’s impact assessment notes that, according to the Treasury analysis, the total amount of deferred rent liabilities may be at around £9 billion by March 2022. It is likely that businesses and landlords could have been helped by the legislation being introduced a little earlier, but we move forward, and as the Bill moves forward the issues around affordability and accessibility should be further tested. The Minister alluded to that in his speech on Third Reading Businesses up and down the country have had a very tough Christmas period, despite the period of October to the new year being called the golden quarter for many hospitality and retail businesses, in which they hope enough revenue can be made, particularly in December, to make up for and steer through the fallow months of January and February. That period has been incredibly difficult this time around. UKHospitality found that the average hospitality venue lost over £10,000 in the weeks leading up to Christmas, with Christmas day takings down 60% compared with those in 2019. A December survey—the period between some of the stages of the Bill—by the Night Time Industries Association found that the outstanding business debt from their members was, on average, around over £200,000 per unit Businesses need help with their rent debt, but they will not be able to access it if the cost of arbitration in the Bill is too high. It is vital that the Government continue to listen to the views of Members of this House, and Ministers should ensure that arbitration fees are capped. It is also vital that all viable businesses can access the arbitration process, including those that no longer occupy their premises. I heard what the Minister said in relation to how the courts might interpret that in the context of the intentions behind the Bill, but that issue may well be raised further in the other place. The Government must ensure that there are enough arbitrators, as we have raised, to deal with all cases, and that the arbitration system works consistently and fairly We recognise that, as the scheme comes in over March and into April, businesses will also be hit by the hike in national insurance contributions, as well as the ongoing labour shortages, supply chain shortages, rising prices and rising inflation. It is why, in the context of business cost challenges, we continue to believe that the hike in national insurance contributions will be the wrong move at the wrong time. It will be right when viable businesses, we hope, start to recover, and when the arbitration process comes in and they are expected to repay any rent arrears. It is critical that any arbitration system that is created is administered within the context of a wider supportive environment for businesses. I hope that the Minister will keep that under review, and perhaps raise the issue with his Treasury colleagues Labour supports the Bill, which addresses a commercial issue on which we have called for action. It provides a fair system for helping landlords and tenants to find a solution to rent arrears under a binding arbitration system. Its measures must be kept under review so that the outcomes that it is intended to achieve are supported, and the process does not otherwise become one that loses the confidence of those it is there to support. On that basis, I wish colleagues in the other place every success in their ongoing scrutiny of the Bill as it moves forward Question put and agreed to. Bill accordingly read the Third time and passed. Glue Traps (Offences) Bill (Money) Queen’s recommendation signified. Resolved, That, for the purposes of any Act resulting from the Glue Traps (Offences) Bill, it is expedient to authorise the payment out of money provided by Parliament of: any expenditure incurred under or by virtue of the Act by the Secretary of State or another public authority; and any increase attributable to the Act in the sums payable under any other Act out of money so provided.—(Jo Churchill.) Glue Traps (Offences) Bill (Ways and Means) Resolved, That, for the purposes of any Act resulting from the Glue Traps (Offences) Bill, it is expedient to authorise the charging of fees and other charges under the Act.—(Jo Churchill.)