- NatWest share offer mulled
- Alcohol duty freeze
- Plans to simplify ISAs
Shares in NatWest (NWG) were down slightly at 205p as the chancellor Jeremy Hunt floated the idea of a share offer.
The Government still owns a 39% stake in the UK high street bank. The concern may be that shares will be offering to investors at a discount, acting as an overhang on the share price.
PUBS AND BOOZE STOCKS TOAST DUTY FREEZE
There were relatively a few winners in this Autumn Statement apart from British pub and hotel operator Marston’s (MARS) which saw its shares rise nearly 3% to 34p in the afternoon as the chancellor announced a freeze on alcohol duty (across beer, wine and spirits) until 2024.
Drinks maker Diageo (DGE) shares rose over 1% to £28.34 on the news of the alcohol duty freeze.
Tobacco stocks British American Tobacco (BATs) and Imperial Brands (IMB) were almost unchanged as the chancellor reaffirmed the Government’s intentions to crack down on the legal age of smoking and children vaping.
The nascent artificial intelligence (AI) sector in the UK also got a boost with a promise of £500 million from the Government.
The UK's flagship index the FTSE 100 was little changed after the delivery of the Autumn Statement flat at 7464.62.
Sterling was down a touch in afternoon trading having hit a 10-week high on 21 November.
And UK two-year gilts were up slightly to 4.59% after the OBR (Office for Budget Responsibility) predicted the UK economy will grow marginally by 0.6% this year, 0.7% in 2024 and 1.4% in 2025. This represented a downgrade since the spring and the OBR also increased its inflation forecasts for 2023 and 2024 from its previous projections.
SIMPLIFYING ISAS
Although, chancellor Hunt didn’t mention plans to simplify individual savings accounts (ISAs) during his speech, in the written statement he said the ‘Government will allow multiple subscriptions to ISAs of the same type every year from April 2024.’
The Government will also allow partial transfers between providers from April 2024: remove the requirement to reapply for an existing ISA annually and expand the Innovative Finance ISA to include Long-Term Asset Funds (LTAFs).
There are plans to allow multiple ISA subscriptions, partial transfers between providers as well as a consultation on allowing certain fractional shares to be held in an ISA.
