Leading Tax firm believes the government needs to do more to help businesses

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TAX firm Blick Rothenberg suggest that the Government should support landlords and tenants in the hospitality and retail sectors after COVID-19.

They believe that the government should bare a third of the cost of rents while businesses are reopening.

The tax firm feels If the Government, tenants and Landlords made a tripartite agreement it would help the British economy back on its feet.

Governments should do more to help businesses pay rent| Scottish News
The Government, tenants and Landlords should make a tri-partite agreement to get British business back on its feet(Photo from Dan Burton on Unsplash)

Mark Hart, retail partner at the firm said: “ The Secretary of State for Business Kwasi Kwarteng has recognized that businesses are struggling with cashflow as they reopen with leisure and hospitality still not being able to operate at full capacity, but he has not come up with a plan and businesses are struggling now.

“A clear means of offering targeted support for retail and the hospitality sectors would be for Government to provide grants for up to a third of the rent cost with a third being met by the tenant and a third being negotiated with the landlord.

Governments should do more to help businesses pay rent | Scottish News
Government should support landlords and tenants in the hospitality and retail sectors by bearing a third of the cost of rents(Photo from Dan Burton on Unsplash)

“This arrangement should be coupled with a commitment for the landlord and tenant to agree a new basis for the future rentals going forward.

“By taking action now, the Government could help create a sustainable business model which takes into account the current reality, preserves jobs and works towards ensuring bricks and mortar retail remains a viable business model.”