Kingfisher halves cost savings as it pays back £130m in Covid rates relief

B&Q owner Kingfisher became the latest firm to repay Covid-19 business rates relief and added that projected full-year cost savings would more than halve as a result.

The company, which also owns Screwfix in the UK and Brico Depot in France, said it would hand back £130m to the UK and Irish governments, citing strong trading during pandemic lockdowns.

Major UK supermarkets including Tesco and Sainsbury’s last week said they were paying back business rates after rising criticism of firms taking government handouts despite making bumper profits and paying out dividends.

Kingfisher said £110m of the relief was due in the 2020/21 fiscal year and the balance in 2021/22. The company last month said it expected a £175m boost to profits this year from “temporary cost savings” that include government support.

It now anticipated that these savings would come in at around £85m net of any Covid-related costs.

Chief executive Thierry Garnier said actions taken to deal with the pandemic and the group’s resilience “we believe that returning the UK and Irish business rates relief in full is the right thing to do".