2nd Dec 2020 08:41
(Alliance News) - Tesco PLC on Wednesday said it will repay GBP585 million of business rates relief received from the UK government as a result of the Covid-19 pandemic
In March, the UK Chancellor of the Exchequer Rishi Sunak said the UK government would give all retail, hospitality and leisure businesses a 100% business rates holiday for the next 12 months, with the holiday intended to help companies weather the pandemic
On Wednesday, the FTSE 100-listed grocer stated it is "immensely grateful" for the support provided, describing it as a "game-changer" which ensured customers got access to the essentials they needed.
Tesco added that all the funds from rates relief was spent on its response to the pandemic as food retailers had to deal with panic buying, pressure on supply lines, safety concerns and the risk of mass absences from work.
However, it noted its latest estimate showed Covid-19 would cost the company GBP725 million this year, above the business rates relief received.
"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," said Chair John Allan.
Shares in Tesco were trading 1.1% lower at 226.50 pence each on Wednesday morning in London.
By Ife Taiwo; [email protected]
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