The hospitality sector was the real winner from today’s budget after Rishi Sunak reduced business rates by 50% up to a maximum of £110,000 while also cutting duty on the draught beers, equivalent to 3p a pint.
Challenger banks were given a boost after Sunak increased the annual allowance on the surcharge levy levy to £100 million, with One Savings Bank (OSB) gaining on the news.
HIGHER COST OF LIVING
The chancellor laid the blame of rising inflation and energy costs squarely on international markets and global supply constraints, saying that inflation could average around 4% or more into next year.
Sunak lauded the Bank of England’s track record of keeping inflation low and hinted that an interest rate rise is on the cards, possibly before Christmas.
However, the latest forecasts from the OBR (office for budget responsibility) suggested the economic recovery had been stronger than expected and this gave some comfort to the market with the FTSE 100 and FTSE 250 indices gaining slightly while the pound remained stable.
UK housebuilders gained slightly on the rosier economic outlook and plans to boost affordable housing and infrastructure spending which saw Barratt Developments (BDEV) and Persimmon (PSN) gaining around 1% apiece.
Savers will be relieved that the chancellor maintained the annual ISA (individual savings allowance) allowance of £20,000 for the 2022-23 tax year.