B&Q owner Kingfisher to pay back £130m of business rates relief
DIY chain says returning tax break is ‘right thing to do’ after sales remained strong throughout pandemic
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Your support makes all the difference.The company behind B&Q has said it will pay around £130m to the UK and Irish governments, becoming the latest retailer to hand back business rates relief.
Kingfisher has experienced strong sales because people have spent more time and money on DIY during the pandemic.
The firm’s announcement comes after a series of household names including Tesco, Sainsbury’s, Aldi, Lidl, Morrisons and Pets at Home have pledged to forego a tax break announced by Rishi Sunak in March.
The chancellor waived business rates to help struggling shops, pubs and music venues through lockdown and economic disruption cause by Covid-19.
Kingfisher boss Thierry Garnier said government support for businesses had been “invaluable” during the pandemic.
“We made significant investments to ensure the safety of our customers and teams, taking important steps to strengthen our balance sheet and limit the financial impact of Covid-19,” he said.
“These actions, combined with the rollout of our new strategy and the hard work of our colleagues and teams, have delivered growth throughout the group and led to the hiring of 3,500 additional colleagues.
“Given this resilience, and our commitment to support our communities, we believe that returning the UK and Irish business rates relief in full is the right thing to do.”
Pressure is building on retailers that have not promised to pay business rates including the John Lewis Partnership, Marks & Spencer and the Co-op. The chains have benefited from increased food sales but say they have incurred costs to make stores Covid-secure and have lost out on non-food sales and revenues from city centre locations.
Sainsbury’s boss Simon Roberts urged the government to overhaul the business rates system to “level the playing field“ between physical and online retailers.
The tax is charged on estimated property values, therefore online retailers which have fewer sites in cheaper, out-of-town locations pay much less, a factor that critics say gives them an unfair advantage and contributes to the decline of high streets.
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