Andy Burnham has announced a 20 percent cut to business rates for pubs, clubs and live music venues. This move forms part of a series of policies introduced since he became prime minister.

The reductions are expected to cost around 100 million pounds annually. Funding will come partly from a review of reliefs given to anti-social businesses, with vape shops specifically highlighted. Downing Street indicated it will examine firms that fail to contribute positively to local communities.

A typical pub could save an estimated 1,100 pounds next year under the plan. Around 32,000 businesses are set to qualify, though the largest music venues will be excluded. Full details are scheduled for the budget.

The government also intends to collect more tax from businesses selling via online marketplaces that avoid their tax duties. This approach aims to level the playing field with compliant competitors and may involve additional steps for platforms hosting third-party sellers.

Burnham had earlier promised to increase taxes on out-of-town warehouses used by online retailers such as Amazon to support hospitality rate reductions.

Michael Kill, chief executive of the Night Time Industries Association, described the cut as meaningful relief. He noted the inclusion of clubs alongside pubs and live music venues shows recognition of the night-time economy's economic, cultural and social role. This marks the third major policy move in recent days, boosting sector confidence.

Burnham stated that governments have allowed valued venues to vanish from high streets for too long. He emphasized backing businesses that communities want and protecting pubs as the heart of local areas.

The agenda

11am BST: UK Confederation of British Industries industrial trends orders (July; previous: -45; consensus: -40)
1:15pm BST: European Central Bank interest rate decision (consensus: no change)
1:45pm BST: European Central Bank press conference

Pubs and restaurants firm Mitchells and Butlers reported flat sales in the three months to 18 July due to extended heatwaves affecting trading at outlets including Toby Carvery and Miller and Carter. Food sales dropped 2.4 percent while drink sales rose 2.6 percent, leaving overall results unchanged.

Chief executive Phil Urban highlighted resilience amid unusual weather and expressed confidence in meeting full-year targets.

Carmakers including BMW, Ford, Nissan and Toyota, along with Bosch, privately urged ministers in April to adopt an open technology approach allowing petrol and diesel vehicles beyond 2035.

Pub landlords welcomed the rates relief but called for it to become permanent. Emma McClarkin of the British Beer and Pub Association praised the swift action and stressed the need for lasting reform.

Ash Corbett-Collins of the Campaign for Real Ale called it a strong start that provides breathing space while broader changes are considered.

Segro shares rose about 7 percent after the warehouse firm indicated willingness to accept a takeover bid from Prologis, valuing the company at around 14 billion pounds.

Centrica, owner of British Gas, announced plans to cut 1,300 jobs in customer operations due to shifting behavior, even as it reported a 710 million pound operating profit for the first half of 2026.

Kate Nicholls of UK Hospitality welcomed the support for pubs and bars but noted the exclusion of restaurants, cafes and hotels, urging broader cuts across the sector.