Supermarkets should pay back £1.9bn Covid business rates relief, say MPs

MPs have made calls for supermarkets to pay back the £1.9bn in business rates relief they were awarded to help them through the coronavirus crisis.

Some, such as Tesco and Sainsbury’s have already restarted paying out millions dividends to shareholders, according to a former minister in prime minister Boris Johnson’s government.

In March, the government introduced a year-long break in the payment of business rates across England and Wales, amid fears businesses may struggle to feed the country at such a crucial juncture.

However, some grocery businesses have thrived under lockdowns, with many consumers rushing to the only open shops on the high street to stock up on produce.

Data compiled for the PA news agency by real estate adviser Altus Group projected that Tesco, Sainsbury’s, Asda, Morrisons, Aldi and Lidl are in for a saving of £1.87bn.

Atlus said that Tesco, alone, was expected to receive a bump of around £585m from the tax break, while Sainsbury’s would receive £498m.

According to reports The Guardian, Esther McVey, the Conservative MP for Tatton, said: “Supermarkets need to hand back the £1.9bn of government support. They don’t need it.”

The MP, who previously served as UK housing and planning minister, said the money could be directed towards the owners of small limited companies instead.

Source: Yahoo Finance UK