Pets At Home becomes latest essential retailer to hand back rates savings
The retailer follows Tesco, Sainsbury’s, Asda, Aldi, Morrisons and B&M in agreeing to voluntarily make the payments.
Pets At Home has become the latest essential retailer to agree to hand back millions of pounds in business rates relief to the Government.
The company said it will return £28.9 million, with bosses saying the emergence of a Covid-19 vaccine had allowed them to reassess the levels of uncertainty and that trading remains strong.
The move follows a similar decision by discount retailer B&M, which said on Thursday afternoon that it will repay savings of “around £80 million”.
Waitrose, Marks & Spencer and Co-op have said they will not be making similar moves because the savings are needed to offset the Covid-related costs.
Lidl has declined to comment since first approached earlier in the week.
Pets At Home said the decision “reflects the company’s guiding principle of treating all stakeholders fairly and is supported by the continuing strong performance of the business”.
It pointed out that the retailer, which has more than 400 stores across the UK, spent £35 million on Covid-related costs and had previously said the rates holiday would offset them.
But on Friday chief executive Peter Pritchard said the company will make the payment.
“Recent positive news around the launch of vaccinations for Covid-19 has led us to reassess the level of uncertainty ahead.
“Our decision today demonstrates our clear commitment to acting responsibly and treating all of our stakeholders fairly.”
Pets At Home has seen a surge in sales during the pandemic, benefiting from a self-described “baby boom” in new pet owners.
It came after rivals Tesco and Morrisons made the same commitment on Wednesday.
The decision by the retailers means almost £2 billion will be returned to the Government and puts more pressure on rivals to follow suit.
Retailers are also hoping the payments will lead to wholesale reform of the property tax, with many warning it gives an unfair advantage to online retailers at a time when high streets are struggling.
Sainsbury’s said it will hand over £440 million saved from the business rates holiday.
Discount retailer Aldi plans to give back more than £100 million, Tesco £585 million and Morrisons £274 million.
Asked whether any remaining supermarkets should follow suit, Prime Minister Boris Johnson’s official spokesman said: “It’s a matter for individual businesses but we have been clear throughout that businesses should use our support appropriately.
“We welcome any decision to repay support where it is no longer needed.”
There have been calls for the money to be handed over to the struggling pubs and hospitality sector.
However, House of Commons Leader Jacob Rees-Mogg said in Parliament on Thursday that the money “has already gone”.
Asked for a debate on where the money could be used, he said: “As regards a debate on where the money will go, I’m sorry to say to my honourable friend that, as £280 billion has been spent on supporting businesses during the pandemic, this just reduces it to about £279 billion, so I’m afraid the money has already gone.”
The business rates holiday was announced by Chancellor Rishi Sunak in March, aimed at helping retailers and hospitality firms forced to close due to the pandemic.
The total saving for all “essential” retailers, which have been allowed to remain open, is about £3.03 billion, Altus added, from a total rates bill of £10.1 billion.
