British Beauty Council secures government deal for commercial tenants in beauty sector
By Rebecca Hitchon | 29 November 2021 | Movers & Shakers, News
The British Beauty Council has worked with the UK government to secure a deal for commercial tenants within the beauty sector in England and Wales, once the current eviction protection ends 25 March 2022.
The deal sees new regulations and a Code of Practice set to be introduced to resolve the remaining commercial rent debts accrued during the pandemic, as well as measures being brought in to protect commercial tenants from debt claims.
These measures include County Court Judgements (CCJs), High Court Judgements (HCJs) and bankruptcy petitions and mean that along with the protection from eviction that stands until March 2022, landlords will be unable to go after tenants for debt claims, giving businesses that had to close due to Covid-19 and accumulated debt time to get back on their feet.
Through its lobbying, the British Beauty Council has ensured that businesses within the beauty industry will qualify within the eligibility criteria for arbitration in the government’s Commercial Rent (Coronavirus) Bill. The Bill establishes a legally-binding arbitration process for commercial landlords and tenants who have not reached an agreement.
Prior to this arbitration process coming into force in March 2022, a new Code of Practice has also been released to provide landlords and tenants with a clear process for settling outstanding debts and to help with their negotiations.
Victoria Brownlie, chief policy officer at the British Beauty Council, comments:
“Our sector has had a tough time during this pandemic. Businesses are starting to get back on their feet but the level of debt they have accrued means there will need to be a careful balance to ensure their recovery isn’t threatened by servicing their debts prematurely. It’s important that they are given time to rebuild and recover without threat of losing their premises. These government measures will help with this.”