As Tesco warns on profits and cuts the dividend, things are going to get worse for the big supermarkets before they get any better.Read the full story ›
Tesco shares have fallen by nearly 7 per cent this morning after the supermarket issued a profit warning.
Britain's biggest grocery retailer now expects annual profits to be £400 million lower at £2.4 billion.
Tesco says "challenging trading conditions and ongoing investment...continued to impact the expected financial performance of the Group".
Supermarket giant Tesco has issued another warning on profits and said it will cut its half-year dividend for shareholders by 75%.
Tesco's new chief executive Dave Lewis will now join the company on Monday - a month earlier than planned.
An extra tax on big supermarkets would hit the poorest families hardest, the Government has said.
The Department for Communities and Local Government has rejected calls from 20 local authorities for a new levy on supermarkets to help revitalise local shopping areas.
"Imposing new, additional taxes on supermarkets will push up the price of food and the cost of living, hitting low-income families the hardest," a DCLG spokesman said.
He said there were "much better ways to support small shops".
A coalition of 20 councils is calling for a new levy on big supermarkets to pay for improvements in local shopping areas.
The local authorities say the tax could raise money to help revitalise town centres.
The leader of Derby City Council, which is leading the group, said that life was being "sucked out of the city centre" by big out-of-town stores.
Ranjit Banwait told Radio 4's Today programme the move was a response to "the worst cuts in history" to council funding.
A similar levy is in place in Northern Ireland, while in Scotland health services for smoking and drinking-related disease are partly funded by sellers of tobacco and alcohol.
Tesco chief executive Philip Clarke is to step down in October, it was announced today.
Tesco announced that Dave Lewis is to join the Tesco board from October 1st as chief executive officer in succession to Philip Clarke.
Mr Lewis will receive a basic salary of £1.25 million along with standard benefits.
He will receive a sum of £525,000 in lieu of his current cash bonus from Unilever, where he worked in a variety of roles for almost 28 years.
Tesco is to remove an area of spikes from outside its store on Regent Street, central London, after activists claimed they were "anti-homeless".
The supermarket said the "studs" on a ledge outside the Metro convenience store were installed to deter anti-social behaviour like smoking and drinking, which intimidated their customers.
But with a protest, organised by Left Unity, set to take place outside the store tonight, Tesco said it would remove them to address concerns of those who "interpreted them as an anti-homeless measure".
"We don't want to live in a society where public space is covered in spikes. Homeless people are not pigeons," Left Unity spokeswoman Bianca Todd said.