Commenting on the latest financial support measures announced by the Chancellor today, Russell Nathan, head of our Hospitality team says:
“The latest support offered today by the Chancellor for the retail, leisure and hospitality industries is of course welcome. These sectors have taken the biggest hit when it comes to the restrictions caused by the pandemic, especially coming off the back of a completely decimated Christmas and New Year trading period.
“However, more support is needed. The key for survival for these businesses also lies in negotiating with their landlords and the Government need to support them in making this happen. The Government measures so far have helped restaurants preserve cashflow and retain their core staff however, immediate action is required to assist both the affected business and their Landlord. The most common arrangements being negotiated are rents based on turnover until the end of 2021 or rent free periods being given during the Covid/Lockdown periods with a corresponding extension to the terms of the lease. These agreements are vital to ensuring these businesses are still operating at the end of the year and that the Government measures aren’t wasted. The one area that Government hasn’t tackled is the relationship between Landlords and Tenants and this needs to be prioritised now!