My Lords, I support this measure. It is right that the Government should take action to protect corporates from insolvency in the current pandemic emergency situation. The Explanatory Memorandum makes it clear that the measures are designed to help UK companies and “other similar entities”, so I hope I will be forgiven for pointing out that the measures have no effect and give no relief for those running businesses as self-employed persons from the equivalent of corporate insolvency in their case, which is of course personal bankruptcy. This also applies to the directors of small companies who have been required to give personal guarantees to their creditors and landlords.
I take as an example for the benefit of the Committee a bespoke tailor of my acquaintance. Effectively, his business and the skills he has learned so hard over the years have been criminalised during the past year; it is impossible in practice to do an inside leg measurement without breaching Covid regulations. His past earnings—now very much in the past—exceed the limit for help under the self-employed income scheme that the Chancellor has made available. Of course, trading as he does from shop premises, he is protected from eviction and has had business rate relief, but he is not immune to personal bankruptcy proceedings brought by his landlord. Bankruptcy, even more than corporate insolvency, threatens one’s home, one’s family and one’s reputation in a terrible way. It is a terrible threat to live under. My example is only emblematic, of course; it applies to the self-employed as a class, especially those trading from business premises and, as I said, to directors of companies.
Short of legislation, because legislation is not the essential answer to everything, there are things that the Government could do. For example, they could prevent such claims coming before the courts for a period to come—certainly while the pandemic lasts and for a period beyond—in the same way as they have prevented actions for eviction being brought before the courts. They could even use the force of moral suasion—the bully pulpit, if you like—against unscrupulous and unforgiving landlords. There may be other things that they can do to get landlords and tenants working better and more effectively together. I hope that my noble friend will be able to offer some words of support to those in this very difficult position.