Asda joins ranks of supermarkets set to return business rates relief
Asda has joined the growing number of UK supermarkets to hand back business rates relief given by the government to help it through the coronavirus crisis.
This afternoon the grocer confirmed that it would repay £340m in emergency support – the fifth supermarket to make such a pledge.
Since Tesco first announced it would give back the money yesterday, Morrisons, Sainsbury’s, and Aldi have also followed suit.
Between them, the five supermarkets will hand back almost £2bn in taxpayer-backed funding.
Asda president and chief executive Roger Burnley said: “Throughout the pandemic we have always sought to do the right thing – fulfilling our role in feeding the nation, protecting our colleagues and supporting our communities.
“But, as the hope of a vaccine and a more ‘normal’ life returning in 2021 grows, we have confidence that we are in a strong position to again do the right thing for the communities we serve.
“Almost half our customers are telling us they expect their financial position to worsen in the next 12 months and we recognise that there are other industries and businesses for whom the effects of Covid-19 will be much more long lasting and whose survival is essential to thousands of jobs.”
Supermarkets have won plaudits for the decision, though some analysts questioned the move.
The Co Op is understood to be considering whether to follow suit, while Sky News reported that Waitrose would not do so.
In March the government waived all retail business rates for the financial year in an effort to cushion the blow of the pandemic.