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Daily Mirror
Daily Mirror
Business
James Andrews

Aldi becomes fourth supermarket to agree to hand back more than £100million in tax breaks

Aldi has joined Tesco, Morrisons and Sainsbury's in saying it will return all the tax relief it was given by the Government.

The German discounter said it would hand back more than £100million worth of business rates relief.

Overall, it takes the total amount of tax relief handed back by the four grocers to £1.4 billion - and puts more pressure on rivals to follow suit.

Aldi UK chief executive Giles Hurley said: “Thanks to our amazing colleagues, we have been able to remain open during lockdowns and 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.

"Our continued investment for our colleagues and our customers will remain unchanged.”

Aldi chief executive Giles Hurley said his supermarket would also hand cash back (handout)

The tax breaks came in at the start of the pandemic, offering all businesses a 12 month holiday on rates.

But, given supermarkets have remained trading throughout the coronavirus restrictions - and generally seen sales rise too - people are now handing that cash back.

Tesco was the first to break ranks, announcing early Wednesday morning that it was handing back £585million of support, saying others need the help more.

Sainsbury's said it would be handing cash back too (Getty Images)

Tesco chairman John Allan said: "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."

Since then, pressure has been mounting for other big retailers who have performed strongly to pay pack the money they were handed.

Tesco was first to announce it was handing money back (Getty)

Morrisons was second to get involved - saying it would give back £274million in rates relief.

Sainsbury's came next, announcing £440million would be going back to the government.

Asked on Wednesday if it would match the Tesco pledge, the Co-op said the amount spent on protecting staff and customers outweighed the savings.

It added: "Given the huge uncertainty we're facing ... and the ongoing costs we are incurring, we'll consider our approach in terms of the Government support we've received at year end."

A spokesman for Waitrose owner the John Lewis Partnership said: "We are incredibly grateful for this vital support because we have lost significant sales while our John Lewis shops have been closed and have invested heavily to keep our partners and customers safe.

"The outlook remains incredibly uncertain and Government support remains crucial to help us navigate the crisis.

"We're a business owned by our employees - our partners, not external shareholders - and we don't intend to pay a bonus this year.

"Whenever we make any money, it is invested in our partners, our business and charitable giving."

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