7 Jun 2018
Policy area: Town centre & Retail
Following the recent upsurge in CVAs, the British Property Federation (BPF) calls on government to conduct an urgent review. We believe the process is now being mis-used, and this risks undermining the UK’s global reputation and deterring much-needed investment into our town and city centres, at a time when it is arguably more important than ever that the UK demonstrates it is open for business.
We support the proper use of CVAs in order to help businesses in genuine distress and are keen that CVAs continue to achieve these objectives. There is, however, increasing frustration about the practice of some recent CVAs. The issues include:
CVAs should not be entered into lightly and it is vital that the full impact of CVAs is appreciated:
The BPF therefore calls on Government to conduct an independent urgent review of CVAs. In order to restore some confidence in the interim, we are advocating the following immediate steps:
Melanie Leech, Chief Executive, British Property Federation comments:
“The CVA process is intended to be part of a comprehensive business recovery plan. Property owners, looking after savers and pensioners’ money, will support businesses who demonstrate this commitment but must protect those pensioners against unfair action that penalises their interests.
“Urgent action is required and we are calling on government today to undertake a review, so that we can restore the CVA process to its original purpose.”