New debt protection plan

May 7, 2020 |

NFSP

The government has introduced new measures to protect high street shops and small companies from ‘aggressive’ rent collection and debt recovery.

Business Secretary Alok Sharma set out plans to ensure that retailers will be asked to pay what they can during the coronavirus pandemic. The government will temporarily ban the use of statutory demands and winding up orders where a company cannot pay their bills due to coronavirus, to ensure they do not fall into deeper financial strain. The measures will be included in the Corporate Insolvency and Governance Bill.

Mr Sharma said: “In this exceptional time for the UK, it is vital that we ensure businesses are kept afloat so that they can continue to provide the jobs our economy needs beyond the coronavirus pandemic.

“Our unprecedented package of support can help commercial landlords, including through the recent expansion of the Coronavirus Business Interruption Loans Scheme.

“I would urge them to show forbearance to their tenants. I am also taking steps to ensure the minority of landlords using aggressive tactics to collect their rents can no longer do so while the COVID-19 emergency continues.”

For advice on any commercial property issues, NFSP members can contact our business partner Commercial Plus.

Call 01273 452324 (option 2).

Tags: Finance