‘Kicking the can down the road’: Pub, restaurant and bar owners react to the business evictions ban extension

Pub, restaurant and bar owners expressed both relief and trepidation in reaction to today’s news that the Government is extending the ban on evictions of commercial property tenants until the end of March 2021.

A moratorium on business evictions was introduced earlier this year to help firms ride out the virus crisis, and had been due to end on September 30. It was then extended until the end of 2020, and will now run until March 2021.

The move will offer breathing space to firms in need of support after lockdowns and significantly weaker trade due to tier restrictions.

But hospitality business owners and industry leaders told the Standard that although the move is welcome, many believe it is merely “kicking the can down the road”, as businesses are still concerned they will be unable to pay off rent debt to landlords built up during the pandemic once this “final extension” ends.

Research released in September estimated total rent unpaid for UK commercial property between late March and the end of December will reach around £4.5 billion.

Des Gunewardena is chairman and chief executive of fine dining group D&D London, which is behind venues including the Bluebird cafes, German Gymnasium and Quaglino’s.


He said: “Of course the extension of moratorium is better than not extending it. But at some stage the government has to deal with the rent issue instead of continuing to kick the can down the road.”

Nik Antona, chairman of CAMRA, the Campaign for Real Ale, agreed that the “welcome” step “doesn’t resolve the issue of rent debt that has built up since the start of the pandemic and just pushes the crunch point further down the line”.

He said CAMRA is pushing for further financial support for publicans, including from pub giants, which often lease pub premises to smaller individual operators. Some pub giants slashed rents during the latest lockdown and for areas now under Tier 2 and 3  restrictions, with Greene King offering a 90% concession. 

He said: “The Government must deliver a proper financial support package for publicans and do something to make sure that thousands of commercial pub tenants don't face eviction in April 2021. 

“As before, we want pub companies to lead by example and cancel rent for tenants where pubs are forced to shut, as many in Tier 2 and 3 areas are, and where pubs can open charge rents that are reflective of actual trade - which has been decimated by the restrictions placed on pubs across the UK."

While some business tenants have agreed rent holidays and deferrals with landlords over the past nine months, many have not. The Government has said this latest extension also aims to give landlords and companies a further three months to come to agreements.

Sunny Hodge, founder of wine bar Diogenes The Dog in Elephant & Castle, said he believes the step is "merely a delay for the inevitable” in terms of evictions and business closures.

“What happens in March?" he said. “If restaurants don't pay their rent now, it is unlikely they can magic up the cash in four months’ time from now.”

Mathew Carver, founder of The Cheese Bar / Pick & Cheese at Seven Dials and Columbia Road’s Funk, is an example of an operator to have reached a rent reduction agreement with landlords.

He said: “Whilst this is welcome news, we’ve actually been really lucky to have the benefit of landlords who been very accommodating with rent reductions over the past few months.