Tesco has led the way for those retail businesses (with a conscience) who have seen business boom during the pandemic but have also had the benefit of paying no Business Rates for 2020/21. The benefit to Tesco alone runs to almost £600 million and they are to be applauded in their actions to voluntarily “pay” their rates for the current year.

Along with their principal competitors, they have benefited by being allowed to remain open and fully functioning during periods of lockdown although have seen exceptional operating costs due to the pandemic. Sainsbury’s, Morrisons, Asda and Aldi have also pledged to repay their Business Rates Relief…..but some other competitors have decided not to do so.

How they will undertake the “pay-back” may be rather problematic as there is no administrative mechanism for doing so. Perhaps a direct transfer of funds to HMT or, perhaps, a more localised scheme of “donations’ to assist businesses adversely affected?

In total, some £1.7 billion should flow back to HMT with the potential for this to rise to £2 billion if others follow suit. Some big businesses do have morals after all!

Littlewood & Co. Chartered Valuation Surveyors is an independent property consultancy specialising in property taxation (including business rates) and lease advisory aimed primarily at mitigating property costs for businesses and also providing valuation and advice for strategic and regulatory purposes. Please contact Roger Littlewood if you have any commercial property consultancy requirements you would like to discuss.