º£½ÇÊÓƵ

The Co-operative Group has said it will repay over £15m in furlough money but will not hand back the £66m secured from the Government in business rates relief.

The supermarket giant announced in annual results on Thursday that the pandemic had turned its plans "upside down", adding that while revenues rose "marginally", costs also rose "disproportionately".

It comes after more than £2bn was handed back to the state in business rates relief from other essential retailers who continued to trade during lockdown measures.

The Manchester-based firm made the announcement as it revealed its revenues increased by 5.5% to £11.5bn during the year to January 2, while its profits after tax and discontinued items more than doubled to £77m.

Allan Leighton, Co-op group chair, said: "The Co-op has played a vital and unique role in feeding and caring for the nation through the Covid-19 pandemic and will continue to do so as the vaccine programme is further rolled out.

"We were grateful for the Government support that allowed us to manage our businesses through the pandemic, particularly our Funeralcare business, which has been working with bereaved families in extraordinarily difficult circumstances, helping them mark the passing of loved ones at a time of national grief.

"The pandemic turned our plans upside down and, while our revenues went up marginally, our costs rose disproportionately.