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<p>In order to mitigate against a rise in the number of vacant units, the Government
has introduced a range of measures to protect businesses that are struggling to pay
their rent due to Covid-19. The moratorium on commercial landlord’s right to forfeiture
for the non-payment of rent (Section 82 Coronavirus Act 2020) is extended to the end
of June 2021. Landlords are also prevented from using winding up petitions and statutory
demands to pursue rent debt and the use of Commercial Rent Arrears Recovery (CRAR)
has also been suspended, both extended until 30 June 2021.</p><p> </p><p>In order
to help inform the Government’s strategy to exit these protections, and to gather
evidence on the progress of negotiations regarding rent debt between landlords and
tenants, a Call for Evidence was launched on 6 April. This closed on 4 May and the
Government will make an announcement on future policy ahead of 30 June 2021.</p><p>
</p><p>We continue to reduce the financial burden on retailers by providing eligible
retail, hospitality, and leisure properties in England with 100% business rates relief
until 30 June 2021. This will be followed by 66% business rates relief for the period
from 1 July 2021 to 31 March 2022, capped at £2 million per business for properties
that were required to be closed on 5 January 2021, or £105,000 per business for other
eligible properties.</p><p> </p><p>We have introduced reforms to the use classes to
enable more flexible use of existing buildings. These came into force on 1 September
2020. The use class reform creates a new ‘commercial, business and service’ use class
which encompasses a wide range of uses which will attract people to high streets and
town centres. This includes offices and other business uses, shops, cafes, gyms and
any other uses which are suitable in a town centre. The new class also allows for
mixed uses to reflect changing retail and business models. These reforms will help
support high streets and town centres as they seek to recover from the economic impact
of Covid-19 Businesses will have greater flexibility to change use without planning
permission, allowing them to adapt and diversify more quickly to meet changing circumstances.</p>
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