A series of measures to support businesses through the coronavirus pandemic are set to be extended again.
Measures designed to protect companies from aggressive creditor enforcement were due to finish at the end of June but are now set to be extended by a further three months until 30 September.
The protection covers statutory demands and winding up petitions where debts relate to the pandemic.
Christina Fitzgerald, Vice-President of insolvency and restructuring trade body R3, said:
“Many companies across the country will appreciate the action the Government has taken today – particularly given the delay to the easing of lockdown announced earlier this week.
“Trading conditions have improved recently, but the Prime Minister’s decision to delay the removal of the final lockdown measures underlines that we’re still in choppy economic waters.
“While the extension of these measures will benefit many companies, as time goes on the Government will need to consider the impact on creditors – who have staff and overheads to pay themselves. Balancing these interests is a difficult task for the Government.”
Separately, a ban on landlords evicting firms for unpaid commercial rent is also set to be extended for nine months. This ban was also due to end on 30 June.
It is estimated that firms in retail and hospitality are in £5bn of rent debt. While many firms in these industries welcomed the move, some landlords’ groups voiced dismay over the decision.
Tom Fox, Licensed Insolvency Practitioner at Umbrella Insolvency said: “These latest measures will be welcomed by many businesses that are still struggling with the effects of the pandemic. There is a high chance that this could be the last bit of coronavirus support offered to most firms, so if your company is struggling then it’s vital that you start to plan your recovery right away.
“Working with an insolvency expert is the best way to rescue a business. They will work closely to understand your position and offer the best independent advice they can.”
For more information about company insolvency services, speak to a member of the team. Call: 0800 611 8888.