Decision Maker: James Barrah (Director - Assets)
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
To apply a new policy to allow a three month
rent deferment for tenants affected by the Corona Virus, to be
recovered back over the next nine month period, as confirmed by the
Gold Meeting of 21 March 2020.
The widespread effects of the Covid 19 virus
mean that there is a strong likelihood businesses that occupy
council premises will be experiencing cashflow difficulties.
Requests to give rent free periods are being received.
The government is offering support to business which is being
administered by the Council’s Economic Regeneration
team.
Given this recognised pressure on business in the County a proposal
was shared with the Gold Meeting to put in place an emergency
policy to deal with the initial period of population
lockdown.
The policy that has been confirmed by CEOs is based on a single
approach being used when request are made for a rent-free period or
a deferment of rent payments. The key points are:
a. On request only
b. Three-month deferment of rent
c. Recovered over nine months
d. (Or the remaining term of the lease, if that is shorter.)
e. On equal instalments
f. No interest charge for the deferred rent
The total exposure of the Council in cashflow terms is estimated at
£1.2 million.
This will include a three-month delay in issuing service charge
demands.
Each individual application of the policy will be captured by
Officer Delegated Decision forms on a standard template. The period
for rent deferment is from 23rd March 2020 to 23rd June 2020, at
which point the approach will be re-considered.
I confirm that in making this decision I have considered the
following in line with Wiltshire Council’s
Constitution:
Key decision requirements: NA
Views of relevant cabinet member(s), committee chairman, area
board(s): Gold Meeting of 20 March considered this policy.
Consideration of the area boards and delegated decision checklist
for officers on the issue of when and how to involve local
councillors and area boards in decisions about local services:
NA
Implication of any council policy, initiative, strategy or
procedure: This is a new policy and ties in with the work to
support local businesses by the Economic Regeneration team
Consultation in accordance with requirements and expectations
of
consultation with the public: Relevant heads of service and
directors have been consulted
Range of options available: Given the unprecedented circumstances
this is considered to be the appropriate option at this time.
Others are examined below.
Staffing, financial and legal implications: Finance were fully
consulted in the decision making process
Risk assessment: This has been recorded on the corporate risk
register with a total cashflow exposure of £1.2 million
Involvement of statutory officers and/or directors: Yes
Regional or national guidance from other bodies: Ties in with
regional and national support for businesses in light of national
impositions arising from Covid 19
The council’s constitution: Yes
This contract is suitable for execution under the e-signature
process: NA
Refuse rent deferment requests. This may have
an effect on the businesses involved and is against the wider
council and central government to support them through the
Coronavirus.
Adopt an ad-hoc approach. This will create the potential for
inconsistent approach to the problem. A clear policy that officers
can refer to will reduce the pressures on officers in dealing with
these requests.
Allow a rent-free period. The approach of a deferment is considered
to be an appropriate and proportionate response to the early stages
of the response to the Coronavirus.
Conflict of Interest: Not applicable.
Background: By power given to me pursuant to paragraph 1 of Part 3 Section D2 of Wiltshire Council’s Constitution Scheme of Delegation to Officers (as last updated in February 2016) adopted by the Council at its meeting on 9th November 2010 or any subsequent successor constitution, I am authorised to make the above decision.
Contact: Simon Hendey, Director - Assets and Commercial Development Email: simon.hendey@wiltshire.gov.uk Tel: 01225 713599.
Publication date: 01/06/2020
Date of decision: 23/03/2020
Accompanying Documents: