In London, the FTSE 100 index ended up 7.96 points, or 0.1%, at 10,694.50.
asserted
index → end → 10,694.50
The FTSE 250 ended 77.11 points lower, 0.3%, at 24,639.26, and the AIM all-share advanced 2.43 points, 0.3%, at 760.92.
asserted
AIM → end → 760.92
In London, Mr Healey delivered his first Budget which he said was “for the working people of Britain”, and was built on “fiscal discipline”.
asserted
he → deliver → discipline
Mr Healey said the Labour government’s plans will give “breathing space” to households and bring “innovation and growth in every postcode”.
asserted
plans → say → postcode
He announced increases to taxes on profits earned by banks and betting companies to help fund support for soaring energy bills.
asserted
He → announce → bills
“Fiscal discipline is my first commitment,” said Mr Healey, as he faced up to pressure to reassure bond markets.
asserted
he → say → markets
Tom Stevenson, investment director at Fidelity International, said: “For investors, the message was one of stability, with few major surprises to unsettle financial markets.”
asserted
message → say → markets
The challenging economic backdrop to the Budget was laid bare in forecasts from the Office for Budget Responsibility.
asserted
backdrop → lay → Responsibility
While growth this year was upgraded to 1.2% from 1.1%, the watchdog slashed its estimate for next year from 1.5% to 1%.
asserted
watchdog → upgrade → %
Inflation is forecast to reach 3.1% in 2026 and 3.4% in 2027, before returning to 2% in 2028, around a year later than forecast in March.
asserted
Inflation → forecast → March
Read More
Fiscal headroom against the current Budget rule is seen at about £15 billion in 2029-30, down from £23.6 billion in the March 2026 forecast, before being rebuilt to £22 billion in 2030-31.
asserted
headroom → read → 2030
Peel Hunt chief economist Kallum Pickering called it a “mostly inconsequential” Budget, and one that markets can “tolerate”.
“For all Prime Minister Andy Burnham’s talk that the UK should not be in hock to the bond market, his government’s first Budget, delivered by Chancellor John Healey, was plainly designed with the market in mind.
“Fiscal rules were left untouched, higher debt-interest costs more than accounted for the reduction in near-term headroom, and there were no broad-based tax rises to spook anyone,” he noted.
asserted
he → call → anyone
Sanjay Raja, Deutsche Bank’s chief UK economist commented: “The Chancellor’s mantra heading into the autumn Budget was to ‘do no harm’, and we think the Chancellor successfully met this objective.”
asserted
Chancellor → comment → objective
ING said the Budget “keeps the deficit on a downward trajectory and, crucially, doesn’t do anything that could make life harder for the Bank of England.
uncertain
life → say → England
But many of the UK’s longer-term challenges remain unfunded and unaddressed, while the Budget keeps alive the option of an early election in 2027”.
asserted
option → remain → 2027
Bond markets took the Budget in their stride with yields on UK 10-year gilts nudging down to 5.33% from 5.34% at the same time on Tuesday.
asserted
yields → take → Tuesday
Kathleen Brooks, research director at XTB said the bond market’s verdict is a “decent B+”, adding “overall, this Budget is steady as she goes”.
asserted
she → say → XTB
On currency markets, sterling was little moved.
asserted
sterling → move → markets
The pound was quoted at 1.3310 dollars, up from 1.3307 dollars.
asserted
pound → quote → dollars
Against the euro, sterling edged down to 1.1941 euros from 1.1943 euros.
asserted
sterling → edge → euros
On the FTSE 100, banks held firm despite the news that the UK’s lenders will pay an extra 3% banking surcharge, rising to 6%.
asserted
lenders → hold → %
The Government said the higher levy will be temporary and be in place for 15 months.
asserted
levy → say → months
There had been fears that the levy would return to the previous 8% level it had stood at until 2023.
asserted
it → return → 2023
RBC Capital Markets analyst Benjamin Toms estimates the changes to the surcharge will be a net headwind for bank FY27 profitability of up to 4%.
asserted
changes → estimate → %
“The market will be sceptical that these changes will be temporary based on experiences elsewhere in Europe such as Spain,” he added.
asserted
he → base → Spain
Lloyds Banking Group closed up 1.7%, Barclays up 1.6% and NatWest up 2.0%, while Asia-focused peer Standard Chartered rose 2.4% after raising guidance alongside third quarter earnings.
asserted
Chartered → close → earnings
Entain rose 3.6%, and Rank jumped 12%, despite the extra gambling duty.
asserted
Rank → rise → duty
JPMorgan said the increase in machine gaming duty to 25% from 20% was “a relief versus worst-case fears” and well below earlier speculation that it could double to 40%.
uncertain
it → say → %
But housebuilders went into reverse despite confirmation of a support scheme for first-time buyers in the Budget.
asserted
housebuilders → go → Budget
Barratt Redrow slumped 6.6%, Taylor Wimpey fell 7.3% and Persimmon 6.9% after all being firm features heading into the fiscal statement.
asserted
Persimmon → slump → statement
Analysts suggested there could be some potential disappointment on the total funding level, and timing, of the scheme, which is likely to lead to softer sales rates in the interim.
uncertain
which → suggest → interim
In European equity markets on Wednesday, the CAC 40 in Paris ended flat, while the DAX 40 in Frankfurt climbed 0.4%.
asserted
DAX → end → Frankfurt
The Dow Jones Industrial Average was up 0.3% at the time of the closing bell in London on Wednesday.
asserted
Average → close → Wednesday
The S&P 500 was 0.2% higher but the Nasdaq Composite eased 0.1%.
asserted
Composite → ease → ?
Against the dollar, the euro firmed to 1.1148 dollars on Wednesday from 1.1142 on dollars Tuesday.
asserted
euro → firm → dollars
Against the yen, the dollar was trading at 158.23 yen, up from 157.88 yen.
asserted
dollar → trade → yen
The yield on the US 10-year Treasury was quoted at 5.03%, stretched from 5.00%.
asserted
yield → quote → %
The yield on the US 30-year Treasury was quoted at 5.33%, widened from 5.31%.
asserted
yield → quote → %
Investor attention now switches to the Federal Reserve’s interest rate call.
asserted
attention → switch → call
David Morrison at Trade Nation commented: “As far as investors are concerned, the consensus expectation is that interest rates will be left unchanged, even though all major US inflation measures show that prices are far from stable, and are well above the Fed’s 2% target.
asserted
prices → comment → target
…and 13 more, not listed.
The Aporia
