The UK’s top stocks moved higher on Wednesday as the Chancellor delivered his spring Budget statement, including measures to boost investment in the City.
The FTSE 100 was relatively steady following the lunchtime speech, indicating that there were no major surprises thrown in.
It closed 33.15 points higher, or 0.43%, at 7,679.31.
The pound was given a slight boost, meanwhile, rising 0.4% against the US dollar to 1.2757. On the other hand, it was down about 0.1% against the euro to 1.169.
Jeremy Hunt’s Budget included plans for a British ISA, which will give investors an additional £5,000 tax-free allowance to invest exclusively in UK equities, when they max out the existing £20,000 yearly limit.
The measure garnered a mixed response from savings and investment experts, with some suggesting that it will have a limited impact on the City due to the small minority of more wealthy investors who will be able to take advantage of the additional allowance.
Other pointed out that the measure could encourage people to concentrate investing in one market rather than diversifying their portfolio of investments.
Nevertheless, Chris Cummings, chief executive of the Investment Association, said: “The proposed UK ISA has great potential to drive new capital flows to UK companies, including small and mid-cap companies.”
Chris Beauchamp, chief market analyst for IG, said: “The Chancellor’s Budget was unlikely to cause many ructions in global markets, but the cautiously optimistic tone of Jeremy Hunt’s speech helped the pound to edge higher.”
Elsewhere in Europe, Germany’s Dax rose 0.1% and France’s Cac 40 moved 0.28% higher.
In the US, the S&P 500 was up about 0.8% and Dow Jones was 0.5% higher by the time European markets closed.
The price of Brent crude oil jumped by 1.8% to 83.50 US dollars per barrel.
In company news, shares in Chill Brands jumped despite the Government announcing a new tax on vapes in a bid to discourage non-smokers from taking up the habit.
But Chill Brands, which sells a range nicotine-free vapes, may have benefited from the plans for a one-off increase in tobacco duty to ensure vaping remains cheaper than smoking. Its share price was 8.3% higher at close.
On the other hand, shares in outsourcing giant Capita plunged by more than a fifth after the company revealed it slumped to an annual loss.
The group said it was pressing ahead with rapid cost-cutting plans following the poor performance, targeting another £100 million in annual cost savings by the middle of 2025.
Shares in the firm, which is a major contractor for the Government and local authorities, were down by 22.5% at the end of the day.
The biggest risers on the FTSE 100 were ConvaTec, up 15.4p to 267.8p, IAG, up 6.8p to 148.65p, Anglo American, up 63.6p to 1,767.4p, Smith & Nephew, up 28.5p to 1,077p, and Weir Group, up 48p to 1,928p.
The biggest fallers on the FTSE 100 were Hikma Pharmaceuticals, down 57.5p to 1,841p, Fresnillo, down 14.4p to 479.3p, Smurfit Kappa, down 84p to 3,254p, Antofagasta, down 36p to 1,741.5p, and Reckitt, down 100p to 5,014p.