Andy Burnham to cut tax for pubs, clubs and live music in England and make vape shops pay more – business live

Andy Burnham to cut tax for pubs: Segro Accepts Prologis Takeover as Burnham Unveils Hospitality Tax Cuts Wanderstayfinder.com – British warehouse

Segro Accepts Prologis Takeover as Burnham Unveils Hospitality Tax Cuts

Wanderstayfinder.com – British warehouse operator Segro has seen its shares climb approximately 7% following confirmation that it would welcome a takeover bid from American competitor Prologis. The FTSE 100 member announced overnight that it would accept Prologis’s approach provided a firm offer materializes, having previously turned down an initial £12.6 billion proposal alongside two additional attempts. At Wednesday’s trading close, the company carried a valuation of £12 billion, meaning Thursday’s price movement contributed roughly £800 million to its market capitalization.

Prologis’s updated proposal involves exchanging 0.092 new shares for every Segro share held, which places the British firm’s value at £10.32 per share, equating to approximately £14 billion in total. Segro’s stock reached £9.51 on Thursday, indicating that market participants remain somewhat uncertain about whether the transaction will ultimately proceed. This development marks another setback for Britain’s premier stock index, which has experienced numerous large corporations acquired by American rivals—whether publicly listed or privately held—or simply relocating to the United States in pursuit of superior valuations.

New Government Targets Hospitality Sector

Meanwhile, Prime Minister Andy Burnham has introduced a 20% reduction in business rates covering pubs, clubs, and live music establishments, representing the most recent initiative among a series of policies implemented since assuming office. These reductions are projected to cost approximately £100 million annually, though partial funding will come from reassessing reliefs designated for what officials describe as “anti-social businesses,” with vape retailers specifically identified. According to 10 Downing Street, the review will examine enterprises that “do not make a positive contribution to local communities.”

The reduction is expected to save an average pub an estimated £1,100 in the coming year. A total of 32,000 establishments will be eligible for the benefit, though the largest music venues will be excluded, with comprehensive details anticipated in the upcoming budget. Additionally, the government plans to increase taxation on “businesses that sell through online marketplaces but do not comply with their tax obligations, putting them at an unfair advantage over businesses that play by the rules.” This could encompass additional measures targeting online marketplaces that host third-party sellers, Downing Street indicated.

Burnham has previously committed to increasing taxes on out-of-town warehouses belonging to online retailers like Amazon, a move designed to help finance the rate reductions for hospitality operators. Michael Kill, chief executive of the Night Time Industries Association, a representative organization, stated that the tax reduction would deliver “meaningful relief.” He remarked:

Having worked closely with the new Prime Minister’s team over recent weeks, it is encouraging to see a positive outcome from genuine engagement with the sector. The inclusion of clubs alongside pubs and live-music venues is particularly important and demonstrates a broader recognition of the vital economic, cultural and social contribution made by the night-time economy.

Market Events and Corporate News

This announcement represents the third significant policy declaration from the new administration within three days. Together, these interventions have undoubtedly begun to shift confidence across the sector and created renewed optimism that our concerns are being heard. Burnham commented:

For too long, governments have stood by while cherished venues have disappeared from our local high streets. So today I am changing that. This government will back the businesses that people want to see in their communities. I said I would protect pubs and local high streets – the beating heart of our communities – and that’s what we will do. What we’re announcing today is just the start as we work to bring back hope across the country.

In other market developments, the following events are scheduled: at 11am BST, the UK Confederation of British Industries will release industrial trends orders for July, with the previous reading at -45 and consensus expectations of -40. At 1:15pm BST, the European Central Bank will announce its interest rate decision, with consensus forecasting no change. The ECB press conference follows at 1:45pm BST.

Centrica, the parent company of British Gas, has announced it will eliminate 1,300 positions because “changing customer behaviour” reduces the need for service personnel. The corporation is shrinking its customer operations workforce by roughly 14%, even though British Gas already holds the third-lowest rating among 17 companies assessed by consumer organization Which?. British Gas earned two out of five stars for customer service in the evaluation and has consistently placed at the bottom of its competitors. Conversely, Centrica reported “strong customer satisfaction” and fewer complaints per customer within its retail division. The FTSE 100 member also disclosed a £710 million operating profit for the first half of 2026, contrasting with a £69 million loss during the same period the previous year.

A further update from the Night Time Industries Association indicates that while the lobby group welcomes the general direction of the policy, it remains cautious about the finer details. Michael Kill’s organization continues to monitor implementation closely to ensure the benefits reach all intended recipients within the night-time economy.