Cumbria Chamber of Commerce is urging the government to put together a swift, affordable and accessible process so tenancy disputes don’t hinder future economic growth.
The Chamber is pleased that the government has seen sense and given a small olive branch to SMEs (small and medium sized enterprises) currently struggling, but significant uncertainty still remains.
Since Monday’s announcement that restrictions will continue for four more weeks beyond 21st June, the government has extended the moratorium and ban on evictions, giving a potential lifeline to thousands of businesses in the region.
A number of local authorities in Cumbria have also looked to help the situation by announcing funding streams this week, including Eden District Council’s new Additional Restrictions Restart Grant (ARRG) for those that previously missed out.
But this doesn’t equate to what businesses will lose through the schemes that will be ending soon, including the ending of the furlough scheme, VAT deferral scheme and business rates relief.
Chamber Managing Director Suzanne Caldwell said: “For many SMEs, the moratorium and ban on evictions has offered a lifeline, giving them some significant breathing space to reach an agreement with their landlords on the best way forward and paying what they can, when they can.
“While the extension of the moratorium will help those businesses still significantly impacted by Covid restrictions, we now need a swift, affordable and accessible process to help landlords and tenants resolve disputes sensibly.
“Businesses also need further support to get them through the massive challenges they continue to face. We are in discussions with a number of other organisations and are continuing to lobby government over additional support.”
Through lobbying by business organisations including Cumbria Chamber, the government has released updated guidance which includes extending deadline for additional restrictions grants (ARC) to 30 July 2021.
Claire Walker, Co-Executive Director of the British Chambers of Commerce, said: “Businesses are disappointed by this setback to the reopening in England. This delay to the removal of restrictions is a hammer blow to those firms who must remain closed, and to those who continue to see their ability to trade severely restricted.
“Many firms have fought incredibly hard to stay afloat through-out the pandemic and are struggling with the damage done to their cashflow and revenue. They are desperate to play their part in the recovery. We must ensure they receive the support, and the clarity, that will give them a chance to do that.”
On business support, she added: “The government must provide further cash grants, at least equivalent to levels provided during the first lockdown, and delay the tapering of government payments into the furlough scheme, planned for the start of July. The government should also consider extending the trade credit reinsurance scheme beyond the end of June to minimise possible disruptions in insurance coverage.
“Government should work with lenders to ensure that appropriate forbearance is in place for those who have used government lending schemes and already started to repay their loan without being able to open fully.
“An extension of the VAT deferral scheme and the 100 per cent Business Rates relief for eligible businesses should also be considered given the length of the delay and the impact on hospitality and leisure firms.”
**The Chamber advises businesses to check its Covid Toolkit, which has details of the new restrictions and links to apply for grants for businesses that are affected by the restrictions.
The toolkit is on the Chamber’s website at: https://www.cumbriachamber.co.uk/news/28573-restart-rebuild-and-renew
