The FTSE 100 in the UK experienced a slight decline on Thursday, influenced by losses in the consumer staples and energy sectors, following the announcement of a substantial tax-raising budget by Finance Minister Rachel Reeves the previous day. The blue-chip FTSE 100 slipped 0.3%, while the domestically focused FTSE 250 nudged higher by 0.1%. Some consumer-related stocks such as Unilever and British American Tobacco declined by 0.7% and 1.2%, respectively. Personal goods stocks experienced a decline, with Burberry reporting a decrease of 1.7%. Industrial miners fell 1.2%. Anglo American fell over 1.5%, while Rio Tinto experienced a similar decline of more than 1.5%. Energy stocks declined 0.9%, tracking oil prices that fell on expectations of a Ukraine-Russia ceasefire. BP declined 1.2%.

On the flip side, precious metal miners advanced 0.7% with Endeavour Mining adding 1.2%. Homebuilders gained 0.9% after a decline in the previous session, following the budget’s increase in tax on high-value properties. On Wednesday, Reeves presented a budget that was widely anticipated, which included tax increases and a doubling of her fiscal margin to align with Britain’s fiscal targets, surpassing market expectations, despite an increase in welfare spending. Major investors generally expressed approval of the tax-raising budget, which provides Reeves with greater flexibility to achieve her fiscal objectives. However, they cautioned that it may prove insufficient if economic growth slows, as the tax increases are set to take effect later.

In a notable development, the stock prices of several British gambling firms experienced a decline. Evoke lost 7%, while Rank Group declined 9.5%, reversing Wednesday’s rebound, after both companies cautioned that the proposed increase in taxes on online gaming would adversely affect profits. However, gambling tech firm Playtech rose 8.4% despite warning that it expects an impact of millions of euros.

Unite Group fell 4.4% to a level not seen in over a decade after the student accommodation developer cautioned about reduced earnings in 2026. Online fashion retailer Debenhams surged 44.4% on an upbeat profit forecast. Severn Trent and 3i Group fell as they traded ex-dividend.