[ad_1]
Tesco, the UK’s largest supermarket chain, has announced that it will reimburse £ 585 million of the commercial fee relief given to it during the coronavirus pandemic.
The company said it would seek talks with officials on how to return the full sum to the UK Treasury and delegated administrations.
He attributed the decision to the belief within Tesco that the potential risks it faced COVID-19 The crisis was left behind despite its estimated costs exceeding 725 million pounds.
Tesco has hired 20,000 new permanent employees this year
Supermarkets have been under pressure to announce such a move.
Analysis of government data by property consultant Altus showed that £ 1 out of every £ 6 of rate relief went to the ‘big four’ chains.
Sainsbury’s was expected to profit at nearly £ 500 million, Asda at £ 297 million and Morrisons at £ 279 million, with discount stores Aldi and Lidl enjoying a boost of more than £ 100 million each.
They benefited from a surge in sales in the run-up to and during lockdowns that forced much of the overall retail sector to shut down.
In Tesco’s case, it is most recent results showed an increase of almost 29% in the group’s earnings before tax during the first half of the year, covering the hibernation of the economy across the UK that began in March.
Investors were rewarded with a more than 20% increase in dividends at a time when the vast majority of UK listed companies were withdrawing payments entirely.
Shares, which are down 10% so far this year, fell 0.7% on the open market on Wednesday.
The repayment offer will be seen as an attempt to avoid potential earnings penalties as the Treasury seeks to stop record lending in peacetime through targeted tax increases down the road.
Tesco said Wednesday that the rate relief proved to be a “game changer” by giving the grocery industry the confidence to invest in a time of crisis, from hiring thousands of employees to bolstering delivery fleets.
“For food retailers, the impact was immediate and potentially disastrous: panic buying, severe pressure on supply lines, significant safety concerns and the risk of massive absences from work, culminated in a real and immediate risk to capacity. of supermarkets to feed the nation, “the company said in a statement.
CEO Ken Murphy, who took over from Dave Lewis in October, said the board made a unanimous decision to refund the cash.
Murphy said: “All the decisions we have made during the crisis have been guided by our values and a commitment to play our part.
“In that same spirit, giving this money back to the public is absolutely the right thing to do for our clients, colleagues and all of our stakeholders.”
