PROPOSAL FOR THE DRAFT REGULATORY REFORM
(BUSINESS TENANCIES) (ENGLAND AND WALES) ORDER 2003
Letter from the Clerk to the Office of
the Deputy Prime Minister
The House of Lords Select Committee on Delegated
Powers and Regulatory Reform considered the proposal at its meeting
on 16th October. Before deciding in what form to report to the
House, the Committee would like some further information from
the ODPM as sponsoring Department for the proposal.
One particular aspect of the proposal which the Committee
wishes to consider further relates to agreements to exclude security
of tenure (Articles 21 and 22 of and schedules 1 to 4 to the draft
Order) and associated provisions about surrender. This aspect
is discussed, in particular, in your Department's statement at
paragraphs 9 and 10, Annex A (pages 39-42 and 55-64), Annex B1
(paras 6 to 16 and 29 to 36), Annex D (paras 104 and 106), Annex
E (pages 109 and 110), Annex F1 (para 26), Annex F2 (paras 2 to
8), Annex F13 (para 7) and Annex G (paras 8 to 11).
The Committee has asked me to invite witnesses from
the Department to give evidence before the Committee on this aspect,
in particular, of the proposal at its next meeting on Wednesday
30th October 2002 at 10.30am (Committee room to be confirmed).
I would be grateful if you could let me know in advance the names
of those who will be attending.
The Committee has also asked for a memorandum to
arrive by Thursday 24 October addressing the following questions:
1. Of the 54,000 applications each year (Annex
G, para 9), how many result in the court's approval of the agreement
to exclude security of tenure?
2. What is average number of business leases
concluded each year to which Part II of the Act applies (inclusive
of the 54,000)?
3. It is said (page 39 of the Statement) that
courts do not consider cases on their merits and are not required
to exercise any discretion. What does the Department consider
to be the function of the court in considering applications?
4. What effect does the Department believe its
proposed new arrangements will have on the number of tenancies
concluded each year in respect of which security of tenure is
5. Annex E to the Statement (para 109) does not
specify whether the introduction of new procedures for excluding
security of tenure would remove any necessary protection for tenants.
What protection does the Department consider is provided by the
If you would like to discuss the practical arrangements
for the meeting, I am at your disposal. If you would like to discuss
the specific questions set out above, I would suggest that you
contact our Legal Adviser, Allan Roberts, who generally works
Monday to Wednesday, on 0207 219 2251 in the first instance.
18 October 2002