Stores give back £ 1.7bn

MAJOR supermarkets have agreed to hand back £ 1.7billion they saved from the government’s business rates holiday.

Asda, Sainsbury’s and Aldi joined Morrisons and Tesco in returning the money following mounting pressure.

The big chains, whose sales have boomed in the crisis, have been criticised for taking government help while paying dividends to their shareholders.

Lidl, Waitrose and Iceland are among essential retailers who have not yet agreed to return any money.

Asda, who will pay back £ 340million, said its costs of dealing with Covid had outweighed any state support. But president and chief executive Roger Burnley said: “We are in a strong position to again do the right thing.”

Sainsbury’s said it would hand back £ 440million of rates relief followed by Aldi, which pledged to repay £ 100million.

Earlier this month Sainsbury’s defended a decision to pay £ 230million to investors when the chain is cutting 3,500 jobs.

They follow Tesco and Morrisons, who promised to repay £ 850million between them. The Treasury said any funds returned would “support efforts to protect people’s jobs and incomes”.