Supermarket chains Sainsbury's and Morrisons have followed market leader Tesco in deciding to forgo relief on business rates on its stores during the COVID-19 pandemic.
Sainsbury's said on Thursday it would now pay £410 million of business rates in its year to March 2021 and 30 million pounds in the following year.
In March, the government and devolved administrations exempted all retailers from paying the tax on their store networks for the 2020-21 financial year to help them get through the crisis.
The supermarket groups, which have performed well during the pandemic, have been criticised by lawmakers and media for paying shareholder dividends while receiving taxpayer money in the form of property tax relief.
However, on Wednesday, Tesco said it would repay the £585 million it has claimed because some of the risks of the crisis were now behind it, and returning the money was "the right thing to do."
That stance put pressure on rivals to do the same.
Morrisons soon followed and on Thursday Sainsbury's said it had also had a change of heart.
"Sainsbury's sales and profits have been stronger than originally expected... and we have therefore taken the decision to forego the business rates relief on all Sainsbury's stores," it said.
Taking account of the business rates it will now pay, the group forecast underlying pretax profit of at least £270 million in its 2020-21 year.
Sainsbury's continues to expect underlying pretax profit in 2021-22 to exceed the £586 million made in 2019-20.
Morrisons committed to paying business rates for the coronavirus period in full.
It said the total amount to be paid will be £274 million of which £230 million relates to its 2020-21 financial year.
Morrisons said it now expected direct COVID-19 costs to be around £270 million, about £40 million more than its estimate in September.
Excluding the business rates payment Morrisons still expected 2020-21 underlying pretax profit in line with its expectations.
"We are grateful for the government's swift action at the start of the pandemic which enabled the whole sector to face squarely into the challenges and disruption caused by COVID-19," said CEO David Potts.
Marks & Spencer, meanwhile, said it has no plans to return the relief. M&S claimed business rates relief of £83.7 million pounds in its first half to Sept. 26 and can claim for its second half too.
