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Hospitality relief from government moratorium on commercial landlord sanctions today

March 23, 2020

Moratorium on commercial landlord sanctions and debt enforcement

Earlier today the Government introduced emergency legislation to enact a moratorium on commercial landlord sanctions and debt enforcement for at least three months.

This will be great news to hospitality businesses as the vast majority are now closed and unable to generate cash as a consequence of the COVID-19 pandemic. UKHospitality this morning called on the Government to urgently enact a moratorium on commercial landlord sanctions and debt enforcement. Thankfully the call was answered.

Kate Nicholls, CEO of UKHospitality said: “With the next pending rent day falling this Wednesday, this move by the Government is hugely welcome and will help to protect jobs across the sector. The industry has been pressing ministers for several days to act on this crucial issue, and we are thankful they have responded positively to our concerns.

“While this removes the immediate cash flow pressure of quarter rent day, the Government has made clear that the negotiation is now with lessee and landlord to reach a solution on payment. Hospitality businesses want to work with landlords constructively during this crisis to find solutions and the hope now is that they enter into meaningful discussions on the optimum way forward.”

With many landlords as under pressure as tenants for cash, hopefully balanced resolutions will be achieved.

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