ALDI, Sainsbury’s and Morrisons are set to hand back a collective £814million saved from the government’s business rates holiday.
It comes a day after Tesco said it’d return £585million it saved thanks to the support to help struggling retailers through the pandemic.
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Overall, Sainsbury’s will hand back around £440million, Morrisons will return £274million and Aldi will pay back more than £100million.
Yesterday, Tesco chairman John Allan said the board “are conscious of our responsibilities to society”.
He added that the supermarket didn’t need the savings due to remaining open and trading strongly throughout the coronavirus crisis.
Morrisons was then first to follow its rival’s move, with chief executive David Potts saying the supermarket was “grateful for the government’s swift action at the start of the pandemic”.
While Sainsbury’s said sales and profits have been stronger than expected since the start of the second lockdown in England and the payment will come despite spending £290million on making the business Covid-safe.
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Sainsbury’s chief executive, Simon Roberts, added: “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 forgo the business rates relief that we have been given on all Sainsbury’s stores.”
And Giles Hurley, Aldi’s chief executive, said: “Thanks to our amazing colleagues, we have been able to remain open during lockdowns.
“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.”
The decisions have led to calls for other supermarkets to make similar commitments.
There are also calls for the money to be handed to the pub sector, which is struggling hardest from the new tiered restrictions.
In September, industry bosses warned that thousands of pubs will shut for good if the business rate relief isn’t extended.
New data from real estate adviser Altus Group shows “essential” retailers enjoyed savings of £3.03billion thanks to the business rates relief.
The support was aimed at helping retailers which were unable to open and struggling to make ends meet.
Meanwhile, data by Altus Group last month projected that the UK’s four largest grocers – Tesco, Sainsbury’s, Asda and Morrisons – and rivals Aldi and Lidl would save around £1.87billion as a result of the rates holiday.
This was set to represent more than a sixth of the total £10.1billion rates bill which has been written off for all businesses during the year.
Rates relief was first announced by the Chancellor for retail, leisure and hospitality firms until March 2021.
The figures from Altus show Asda is projected to save £297million and Lidl £108million, for the year.
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Last month, Sainsbury’s said it had received a break worth £230million for the half-year to September in an update which also saw it reveal plans to axe 3,500 jobs.
However, the company came under fierce criticism as it also declared an interim dividend of 3.2p plus a special dividend of 7.3p for shareholders.
In Wales, the six major supermarkets still had to pay around £78million for rates for some stores as a result of devolved business rates.
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