Guardians of the Arches businesses given three months rent-free

Small businesses hit by the Covid-19 outbreak are being given a three-month break from paying rent thanks to Guardians of the Arches campaign efforts.

The railway arch tenants warned that independent businesses would be forced to shut for good if their rent was simply deferred until after the worst of the crisis had passed, rather than waiving it entirely. The group said deferred rents were simply “a way of transferring the risk of Covid-19 on to already severely strained small businesses”.

Now The Arch Company – the body used by arch landlords private equity company Blackstone and Telereal Trillium to manage the properties – has responded to their lobbying by announcing a £10m hardship fund which will cover three months’ rent for businesses which have set up shop in railway arches.

The Big Issue has long backed the Guardians of the Arches campaign, which fought to protect small business tenants and their communities from monopolist landlords.

Following our request to do so, I’m delighted that @thearchcompany is now offering their small business tenants affected by #COVID19 rent relief for three months. This is the right decision – thank you. @ArchesGuardians

— Mayor of London (@MayorofLondon) March 27, 2020

In 2018 activists collected 10,000 signatures which were hand-delivered to then-Transport Secretary Chris Grayling. The petition demanded he not go ahead with plans to sell the railway property to investment firms with tenants fearing that they could be evicted or see rent pushed up by as much as 350 per cent.

But Network Rail soon sold off the arches to Blackstone and Telereal Trillium for £1.46bn.

Since then, the campaign group set up “the biggest commercial tenants’ association ever” to mobilise arches business across the country against profit-hungry landlords.

The group’s success meant that the arches owners’ decision to expect full rent for the next three months paid at a later date, which came under fire earlier this week, was overturned – leaving the campaigners “delighted”.

“This will go a long way to putting tenants’ minds at ease at this time of crisis,” a spokesperson added.

“It’s not yet clear how tenants can access the fund, and it’s important not to place further strains on businesses already at the edge. But we look forward to continuing our dialogue with The Arch Company to ensure all tenants who need it will get this much needed support.

“Thank you to The Arch Company, to our negotiating team and to our brave members who spoke out in public about this vital issue. Onwards!”

Other measures put in place to protect arches tenants include the suspension of bailiff action and evictions, for the next three months, as a result of a business not paying rent.

Those with leases due to expire during this period of uncertainty will be offered tenancies lasting until the end of September, while historic debts – like back rent – will be considered for deferral.

Adam Dakin, managing Director of The Arch Company, said: “Our tenants have been severely affected by the Coronavirus crisis, with many of them having to shut down completely for the next few weeks.

“The government has acted quickly and boldly to protect jobs, but there is still uncertainty about how small businesses that are not trading for the next few months are expected to cover other costs including rent. The uncertainty about what support will arrive and when, means that without our help now, many of our businesses simply won’t survive until that point.

“We have listened to our tenants through hundreds of individual phone calls with them.

“The diverse mix of independent businesses that make up the arches have a special place in each local community, and it would be tragic to lose that because of the economic crisis created by coronavirus. We want to help ensure that the dynamic SMEs that are the heart of the arches are still there at the end of the crisis.”

Last year Big Issue founder Lord John Bird said: “It’s brilliant to see the GotA grow from a campaign into a movement.

“This is an inspired cause, led by pioneering small businesses fighting to protect the future of the high streets.”

The New Economics Foundation previously said that the businesses hit by Network Rail’s railway arch sell off contribute over £725m to the UK economy ever year.

The Runaway Brewery, a microbrewery in Manchester, said it was “incredible news” and thanked Guardians of the Arches for their hard work.

“Thanks too to The Arch Company for listening to tenants and reconsidering your position,” they said. “We know it isn’t easy and we do appreciate it.”