26th Nov 2025 12:27
(Alliance News) - Stock prices in London were down at midday on Wednesday, with investor attention focused on this afternoon's crucial UK government budget, which was published in error ahead of time by the Office for Budget Responsibility.
The FTSE 100 index was down 3.21 points at 9,606.32. The FTSE 250 was down 7.48 points at 21,608.35, and the AIM All-Share was down 0.75 points, 0.1%, at 741.34.
The Cboe UK 100 was down 0.1% at 960.60, the Cboe UK 250 was down 0.2% at 18,769.46, and the Cboe Small Companies was up 0.1% at 17,155.68.
In European equities on Wednesday, the CAC 40 in Paris was 0.4% higher, while the DAX 40 in Frankfurt was up 0.2%.
The chancellor will deliver the budget statement to Parliament around 1230 GMT on Wednesday, after Prime Minister's Questions.
The budget was released early, around noon by the OBR in error. According to the report, the budget will raise taxes by GBP26 billion by 2029-30.
The OBR report published in error said that tax thresholds are frozen by an additional three years until 2030-31.
Further, the report said the UK will introduce a mansion tax on properties worth more than GBP2 million, while fuel duty is set to be frozen until next September.
Meanwhile, a new mileage tax on electric vehicle tax is expected to raise about GBP11 billion by 2029-30. Further, the two-child benefit cap is set to be scrapped from April.
The chancellor insisted she will use her budget to introduce measures to tackle the cost-of-living crisis, as the beleaguered government hopes to keep backbench Labour MPs on side amid an expected series of tax rises.
Reeves has also vowed to reduce the costs of government debt and is expected to take steps to increase the leeway above her borrowing plans, as she attempts to maintain fiscal credibility.
Earlier this month, she dropped plans to hike the headline rate of income tax, something which would have broken a Labour manifesto pledge, amid improved economic forecasting.
However, the chancellor still intends to pursue a strategy of increasing her fiscal headroom, a buffer on her self-imposed borrowing rules.
Meanwhile, WPP is set to make way for a returning British Land Co on the FTSE 100, as the advertising agency's more than 60% share price slump this year leaves it set for a festive index relegation.
According to indicative index changes published by FTSE Russell late Tuesday, there will also be a number of changes in the FTSE 250, with stock market newbies Princes Group and Shawbrook Group potentially on their way in.
Shares in WPP were down 2.2% on Wednesday and British Land fell 0.9%, while Princes was marginally higher and Shawbrook advanced 0.4%.
WPP's looming relegation to the FTSE 250 Index comes hot-on-the-heels of a guidance cut late last month. The firm said it expects 2025 like-for-like revenue less pass-through costs to fall between 5.5% and 6.0%. The outlook has been cut from a 3% to 5% decline guided previously.
Real estate investment firm British Land was relegated from the FTSE 100 in a March reshuffle. Shares are up 20% since a year-to-date low it fell to in early September.
Sterling was at USD1.3143 after midday on Wednesday, down from USD1.3183 at the London equities close on Tuesday. The euro was slightly higher at USD1.1572 from USD1.1569. Against the yen, the dollar was higher at JPY156.52 versus JPY156.13.
Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.1%, the S&P 500 index 0.3% higher, and the Nasdaq Composite up 0.4%.
The yield on the 10-year US Treasury was unchanged from Tuesday's close at 4.01%. The yield on the 30-year was at 4.66%, widened slightly from 4.65%.
In London, Fresnillo and Endeavour Mining climbed as the price of gold increased. The gold miners rose 4.4% and 3.8% and were the best performers on the FTSE 100 index.
Gold was up at USD4,172.90 an ounce at midday on Wednesday from USD4,132.40 late Tuesday.
easyJet fell 2.2%, after analysts downgraded profit expectations for the next financial year amid expectations of a tough winter, despite the airline reporting higher annual earnings on Tuesday.
On the FTSE 250 index, Pets At Home climbed 1.8% as it outlined plans to address weakness in its retail business after announcing sharply lower half year profit.
The Cheshire, England-based operator of 450 pet care centres and 440 veterinary practices said pretax profit fell 29% to GBP36.2 million in the 28 weeks to October 9, down from GBP51.1 million a year ago.
Vet Group underlying pretax profit rose 8.3% driven by higher joint venture practice revenues alongside an ongoing improvement in managed practice profitability.
But Retail underlying pretax profit slumped 84% with gross margins down 105 basis points, reflecting targeted price investment, adverse category mix and lower supplier income.
Revenue declined 1.3% to GBP778.3 million from GBP789.0 million, with like-for-like revenue also down 1.3%.
Interim Executive Chair Ian Burke said: "It's clear that urgent and necessary action is needed to return the Retail business to growth to meet both our own expectations and those of our investors."
As part of the restructuring, Pets at Home said it has initiated a program to reduce overheads by GBP20 million.
The program will incur non-underlying costs of GBP6 million to GBP8 million in financial 2026, but with payback of less than 12 months with a full year of benefit expected in financial 2027.
Looking ahead, Pets at Home confirmed full year guidance for underlying pretax profit of between GBP90 million and GBP100 million, after reducing the outlook in September.
Among small caps, Speedy Hire PLC climbed 3.0% as the equipment hire services firm backed its full year guidance as its interim loss widened but revenue climbed.
It reported revenue of GBP205.2 million for the six months to the end of September, up 0.8% from GBP203.6 million a year ago. The loss widened to GBP15.1 million from GBP2.2 million.
Speedy Hire was up 6.1% as it declared a 0.30p per share interim dividend, down from 0.80p a year ago. The firm says it expects subdued market conditions to continue for the rest of financial 2026.
However, it says recent multi-year contract wins and the commercial agreement with ProService give it confidence for the second half.
The company expects a strong second half weighting to revenue and profit, and added that trading in the second half is in line with the board's expectations.
On the AIM market, Versarien slumped 38%.
The advanced materials firm said a suitor that signed a non-binding heads of terms to buy Versarien's remaining assets has withdrawn its interest.
Versarien said the board is in the process of taking advice and considering its options. It restated that this may include appointing administrators to the company.
Brent oil was trading higher at USD61.78 a barrel from USD61.71.
Besides the official UK budget statement by Chancellor Rachel Reeves which will get under way shortly, this afternoon will also see initial jobless claims data from the US.
By Michael Hennessey, Alliance News reporter
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WPPBritish LandPrinces GroupShawbrook GroupEndeavour MiningFresnilloeasyJetPets at homeSpeedy HireVersarien