Relief for riot-hit firms

Published: 17 August, 2011

Relief for riot-hit businesses may be available in the form of deferred rent payments, insurance under the Riot (Damages) Act or cuts in business rates.

The government has also launched a website and helpline for firms seeking advice on compensation following last week's violence.
Affected businesses can visit www.direct.gov.uk/riotadvice for more details or call 0845 641 4925.

The Local Data Company estimates that 48,804 shops, pubs, restaurants and clubs have suffered directly or indirectly in the 28 town centres affected by the disorder. Of these, independent outlets were hit particularly hard.

To help small firms deal with the problems, the British Property Federation and law firm Hogan Lovells have issued a legally-drafted letter that allows landlords to defer rent from small firms affected by the riots, until they get back on their feet.

Ian Fletcher, director of policy at the BPF, said: "While some retailers will have the benefit of insurance to cover the riot damage last week, others do not or may find it takes time to bring a claim and more generally to restock their business, which could leave them with significant cash flow problems.

"Where possible landlords may wish to offer small or medium sized traders the opportunity to defer rental payments as they get back on their feet, and we hope this letter helps steer them through that process."

In addition, firms whose sites have suffered structural damage or who are located close to badly-damaged businesses, or who have to close for at lease one full day, may be entitled to a reduction in business rates. Those affected are advised to call their local Valuation Office for more details.

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