COVID-19: Major supermarkets to return £1.7bn in business rates relief - Sky News

Five of the UK's major supermarket chains have now confirmed plans to return a total of more than £1.7bn in coronavirus aid to the public purse.

Sainsbury's revealed on Thursday morning it was to hand back £440m in business rates relief, following in the footsteps of biggest rival Tesco - and then Morrisons

Aldi and Asda later revealed they would repay £100m and £340m respectively.

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Image: Tesco led the way in announcing its intention to repay its rates relief of £585m

Sainsbury's said it had been discussing such a move since England's second national lockdown was announced in October. It ended on Wednesday.

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The UK's second-largest supermarket chain said it took the decision because it had benefited from its essential retail status.

Its statement said: "As a result of this, Sainsbury's sales and profits have been stronger than originally expected, particularly since the start of the second national lockdown in England and we have therefore taken the decision to forego the business rates relief on all Sainsbury's stores."

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Asda was the last member of the "big four" to confirm the return of its business rates relief in full - granted to all retail, hospitality and leisure businesses in England for 12 months from April.

It said it was seeking to do the "right thing" despite COVID-related costs outweighing the benefit.

While Aldi's UK boss, Giles Hurley, said of its decision: "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."

Fierce discount rival Lidl was yet to make its own position clear.

The Co-op has said it will make a decision early next year, citing high costs while the owner of Waitrose, the John Lewis Partnership (JLP), appears to have ruled it out saying proceeds have been invested in its operations.

Marks and Spencer said it had no plans to give back more than £80m it had received.

Like the JLP, its business is split between a grocery and department store-style offering - the latter of which has been hammered by restrictions governing the operation of non-essential retail.

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Retailers hope for seasonal rush

This week has seen the collapse of three big names - Sir Philip Green's Arcadia Group, Debenhams and Bonmarche.

Each of the fashion-led businesses is continuing to trade, for now, in the crucial Christmas season for the sector as buyers are sought.

However, 26,500 jobs are hanging in the balance.

In stark contrast, Sainsbury's said it had hired 56,000 people during the coronavirus pandemic, though it emerged last month that 3,500 roles were at risk in a shake-up involving its Argos operations as the chain continues to be integrated into supermarket stores.

The company said the rates relief it was due had been "broadly offset" by the surge in trading it had seen.

Chief executive Simon Roberts said: "While we have incurred significant costs in keeping colleagues and customers safe, food and other essential retailers have benefited from being able to open throughout.

"With regional restrictions likely to remain in place for some time, we believe it is now fair and right to forego 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.

"We continue to urge government to review the business rates system to create more of a level playing field between physical and online retailers."

Shares rose by more than 1% in early deals as the company said it would prioritise dividends over reducing its debt pile.

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2020-12-03 12:33:45Z
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