The government is being urged to change course on workplace policies to accommodate the four-week delay in lockdown easing, originally set for 21 June.
Although the extension of a ban on landlords evicting businesses for unpaid commercial rent is being extended for nine months has been welcomed, business groups want further action over furlough and right-to-work checks.
The eviction ban had been due to expire on 30 June but the Treasury has stated that the delay in further lockdown easing, announced on Monday, had presented fresh challenges to business. The date the ban will expire on is now 25 March 2022.
Treasury secretary Stephen Barclay also announced plans for a binding arbitration scheme to resolve disputes between landlords and commercial tenants. This would come into effect when the eviction ban is lifted.
Retailers and hospitality firms welcomed the news but landlords warned that some profitable tenants were avoiding paying rent they could afford.
With thousands of companies sill unable to trade normally, such as hospitality and leisure firms, Barclay said; “All tenants should start to pay rent again in accordance with the terms of their lease … as soon as restrictions are removed on their sector if they are not already doing so.”
Helen Dickinson, chief executive of the British Retail Consortium, welcomed the announcement saying it came in the “nick of time”. She said: “Retailers need time to trade their way out of debt; this announcement does exactly that.”
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However, Dr Roger Barker, the Institute of Director’s director of policy, said the Treasury must go further: “This is only one element of the cliff edge that we have been calling on government to address. At the end of this month businesses will still face the tapering off of furlough and business rates relief, and the suspension of wrongful trading liability.
“The prudent move would be to commence the tapering down process on the other side of lockdown, after and not before 19 July.”
Barker added: “The government must hold its nerve and push out its business support measures until the job is properly done.”
The government is also being urged to continue digital right-to-work checks.
According to the Recruitment & Employment Confederation (REC) 300,000 people a week could be delayed in starting work if the Home Office does not continue to allow right-to-work checks to be conducted digitally given the delay on lockdown easing.
Introduced on 30 March 2020, digital RTW checks have allowed employers to hire new staff without having to meet them in person to check documents. The REC said this had levelled the playing field between UK and foreign nationals by allowing digital checks for both, rather than just for foreign nationals.
The Home Office has, however, decided to go back to in-person checks from 21 June, even though the final stage of unlocking is now delayed until 19 July.
Kate Shoesmith, deputy CEO of the REC, said: “There are significant labour shortages across the UK right now in every sector. Any delays to hiring could have serious consequences for companies and the recovery. Digital right-to-work checks have saved employers time and money and helped people get back into work quickly while public health measures have been in place.
“Our experience is that they have also raised compliance levels. It makes no sense for government to shoot themselves in the foot and return to mandating in-person checks when the use of digital checks has been a success story of the pandemic. We urge the Home Office to continue with digital checks until at least 19 July and use the intervening time to consult on making them a permanent feature of the labour market.
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The REC argued that by returning to mandating in-person checks for UK nationals, the government was effectively disadvantaging UK jobseekers in the labour market, at the same time as trying to incentivise employers to not rely on workers from abroad.
