Asda and Morrisons have said they do not plan to make use of a extended business rates holiday announced by Chancellor Rishi Sunak.
A rates holiday, launched in 2020 to help firms ride out the virus crisis, was due to finish at the end of this month. But Sunak today said the government will continue to provide eligible retail, hospitality and leisure properties in England with 100% business rates relief until June 30.
Grocers faced severe criticism last year for taking the rates support, while seeing high customer demand during the pandemic and in some cases, paying out dividends to shareholders. A number of firms said they would hand back taxpayer support.
Asda today said it will continue to pay business rates in full during 2021-22.
Roger Burnley, Asda chief executive, said: “There are clearly many industries and businesses that have been hard hit by the pandemic and we hope that by continuing to pay business rates in full this year this we can continue to support the nation’s economic recovery from the pandemic.”
Morrisons will also waive the latest support offer.
