Tesco has said it will repay a £585m business rate holiday that it received from the government’s pandemic support package for retailers.
Its decision comes after the UK’s supermarket giants faced heavy criticism for benefiting from almost £2bn in rates relief as sales surged during the crisis.
Tesco said it was “immensely grateful” for the support provided by the government, adding that it was a “game-changer” that allowed the business to provide essentials to customers.
It added that the Covid-19 crisis will cost the business around £725m this year, exceeding the £585m rates holiday.
However, it said the business has “proven resilient” 10 months into the pandemic, and that it will be returning the rates support in full.
Ken Murphy, group chief executive, said: “While business rates relief was a critical support at a time of significant uncertainty, some of the potential risks we faced are now behind us.
“Every decision we have taken through the crisis has been guided by our values and a commitment to playing our part. In that same spirit, giving this money back to the public is absolutely the right thing to do by our customers, colleagues and all of our stakeholders.”
John Allan, chairman, said: “The board has agreed unanimously that we should repay the rates relief we have received.
“We are financially strong enough to be able to return this to the public, and we are conscious of our responsibilities to society. We firmly believe now that this is the right thing to do, and we hope this will enable additional support to those businesses and communities who need it.”
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