LAW
TOUGH TEST
We have British spirit – but we face challenges
There ’ s no doubt that since lockdown on March 23 , a huge amount has changed for everyone .
The litigation team at Archers Law are no different , with instructions increasing like never before . But while this is a positive time for the team , that is not the story for everyone .
Kenton Bazeley , partner and head of litigation at Archers Law , discusses the impact upcoming regulation changes could have on businesses .
T hroughout this pandemic we have seen businesses rolling up their proverbial sleeves and “ getting on with it ” in usual British fashion .
Whatever your business , however , I do not accept that it has been left untouched by Covid-19 in some way .
Some have flourished . A larger percentage have seen some struggle . Many of those in the middle are yet to assess the overall impact of Covid-19 on turnover , profits , debts , borrowing , staff morale , recruitment and training , all of which will have a massive effect on the sustainability of those businesses .
We have already seen an unprecedented number of household names enter an insolvency process of some description and a larger percentage will have already taken advice , with a plan in place should the situation worsen .
Some will be right on the edge , only staying afloat due to the government assistance , and it is possible that it ’ s about to get worse .
Furlough payments are already drying up and the date for paying back any deferred tax and Coronavirus Business Interruption Loan Schemes ( CBILS ) loans looms ever closer .
It ’ s also a virtual certainty the banks will alter their lending policies given the additional risk of not getting paid , should the proposed reintroduction of Crown Preference take place on December 1 , as the Finance Act 2020 provides .
Earlier in the year , the government passed the Coronavirus Act 2020 . Parts of this act directly affected landlords and have left them hamstrung .
The details of the bill mean they have not been able to take action in the normal way for non-payment of rent , or the payment of debts – if the reason for the non-payment relates vaguely to Covid-19 . They have had to accept this position and any assistance that they can muster . As the government assistance ends , so do the restrictions .
It had been planned that from September 30 , landlords would be able to use forfeiture provisions and / or use CRAR ( Commercial Rent Arrears Recovery ) to recover rent again , but changes released on September 16 put the date for the release of the restrictions back to the turn of the year .
Archers Law ’ s litigation team ( left to right ): Kenton Bazeley , Hayley Bartram , Matthew Ray , Helen Lyne and Natalie Wilson .
We are yet to hear whether the restrictions on the presentation of statutory demands and winding up petitions will also be extended to mirror these changes , or whether the courts will simply continue with their “ Covid excuse ” vetting process . The advantage or otherwise of these restrictions and their extension depends upon what side of the landlord and tenant relationship you sit , but any landlords patiently waiting for the restrictions to be lifted are likely to need to start taking a more proactive approach where possible .
While I blindly hope otherwise , I predict insolvency activity will dramatically increase in the coming months , leading to the potential of lots of empty premises , and many landlords out of pocket .
Finally , I do apologise . I had intended this piece to be a bit more uplifting . However , unfortunately , that is not the reality . We ’ re here to help . We understand how tough this can be for some businesses and individuals . If you are worried about the impact any of the legislative changes will have on you or your business , the team at Archers Law are here to offer advice and support . Come and chat to us .
Kenton Bazeley Partner and head of litigation , Archers Law Email : Kenton . Bazeley @ archerslaw . co . uk Tel : 01642 636500 | Web : archerslaw . co . uk
66 | Tees Business