Supermarkets Commit to Paying Back Over £1bn in Business Rates Relief

Written by: Keith Tully

MorrisonsSeveral of the UK’s biggest supermarket chains have committed to paying back tens of millions of pounds they received this year as a result of the government’s business rates relief policies.

Tesco, Morrisons and Aldi have all committed to making repayments in relation to rates relief essentially because they have been able to keep their sales levels up even as other retailers have struggled.

Sainsbury’s has also said it will be making repayments of business rates relief on the basis that it benefited quite tangibly from being counted as an essential service provider, particularly during the recent England-wide lockdown.

“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,” a statement from the company explained.

Meanwhile, Tesco has said it will repay in the region of £585 million which it received in business rates relief in recent months and Morrisons has said it will return roughly £274 million on the same basis.

Supermarkets had begun to face criticism for taking advantage of the business rates relief opportunities made available to them during the pandemic because their sales levels have increased while others have been hit badly by the pandemic and the associated lockdowns.

The likes of Tesco have pointed out that while their sales have increased, their costs have also risen considerably during the virus crisis but nonetheless the decision to return rates relief money has now been taken by most major players in the supermarket sector.

“The board has agreed unanimously that we should repay the rates relief we have received,” said Tesco’s chairman John Allan in a statement.

“We are financially strong enough to be able to return this to the public and we are conscious of our responsibilities to society,” he added.

All retail, hospitality and leisure venue operators in England were granted business rates relief for a period of 12 months as of April 2020 and while many of those businesses have desperately needed that help, supermarkets have generally been relied upon even more than usual by their customers across the country.

Keith Tully

Author
Keith Tully
Partner

Join Keith Tully on Linked In Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
Processing...
Loader
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Dealing with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
100
Number of UK Offices
30000
Directors Helped
70+
Licensed Insolvency Practitioners

This site uses cookies to monitor site performance and provide a more responsive and personalised experience. You must agree to our use of certain cookies. For more information on how we use and manage cookies please read our PRIVACY POLICY