Supermarkets hand back business rates relief

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Many supermarkets and discounters have decided to return the full value of their business rates relief following criticism.

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Chancellor Rishi Sunak announced in March that all retail, hospitality and leisure businesses in England would be given a business rates holiday for 12 months to help them through the pandemic.

However, yesterday (2 December) Tesco said it would repay £585m, while Morrisons said it would pay back £274m.

Aldi, the UK’s fifth-largest supermarket, today said it will pay back more than £100m to the UK government and the devolved administrations.

Giles Hurley, chief executive officer at Aldi UK, said: “Thanks to our amazing colleagues, we have been able to remain open during lockdowns and despite the increased costs we have incurred during the pandemic, we believe returning the full value of our business rates relief is the right decision to help support the nation.”

In addition, Sainsbury’s has revealed it is to waive business rates relief of £440m. Chief executive, Simon Roberts, said: “With regional restrictions likely to remain in place for some time, we believe it is now fair and right to forgo the business rates relief that we have been given on all Sainsbury’s stores.

“We are very mindful that non-essential retailers and many other businesses have been forced to close again in the second lockdown and we hope that this goes some way towards helping them.”

Sky News is reporting that Lidl has yet to make its position clear on the subject, the Co-op will make a decision early next year, the John Lewis Partnership appears to have ruled it out saying proceeds have been invested in its operations, and Marks and Spencer has no plans to give back more than £80m it has received.