Footsie edges ahead as budget fails to surprise

The FTSE 100, delicately poised at 6,219.6 as the British Chancellor of the Exchequer rose to deliver his third budget speech in parliament, gradually edged ahead, gaining in confidence as the speech progressed with only a few hiccups spoiling the party.

The effect of a half-point fall in gilts, which were not pleased by the apparent generosity of the Chancellor's package, was offset by the potential boost to consumer spending that would result from the tax cuts announced.

There were few problems for the market's middle-ranking stocks or the small-caps, both of which ended not far short of their session highs. The FTSE 250 closed 16.5 firmer at 5,375.7 after a day's high of 5,378.3, while the FTSE SmallCap was finally 7.0 up at 2,322.9.

The Budget moves produced plenty of shifts among the various sectors, with the big drinks companies stabilising as the market registered surprise that the Chancellor had left duty on beer, wines and spirits untouched.

But there was a significant sell-off in the water stocks and BAA as the Chancellor said he would introduce a competition review.

Turnover in equities finished just short of the 1 billion mark, reaching 997.7 million shares.