UK retailers and pubs rise on FTSE as Truss ‘plans economic help’
Shares in some of the UK’s largest retailers and pub groups were among the biggest risers on London’s stock market on Tuesday morning, after reports that the new prime minister, Liz Truss, will spend billions on capping soaring energy prices for households and businesses.
The sportswear giant JD Sports, the clothing and homeware retailer Next, the online grocery firm Ocado and the B&Q owner Kingfisher all climbed more than 4% on the FTSE 100, as investors hoped that Truss’s economic measures could leave consumers with a little more spending money in their pockets, despite the cost of living crisis.
Pub groups and food retailers – including Mitchells & Butlers, JD Wetherspoon, Marks & Spencer and Greggs – pushed the more UK-focused FTSE 250 higher on Tuesday, in anticipation of a government spending package which would lessen the squeeze on households and help businesses to pay their own bills.
The moves came after the news that Truss is planning to freeze household energy bills at their current level for this winter and next, paid for by government-backed loans to energy suppliers, as first reported by the BBC.
In addition, businesses could receive an aid package from the government to help with soaring energy bills – according to Bloomberg – which are making it impossible for some factories, pubs, restaurants and shops to remain open.
Shares in Mitchells & Butlers – one of the UK’s largest pub groups and owner of chains including All Bar One, O’Neill’s and Toby Carvery – rose by 10% on the FTSE 250, while shares in the pub group JD Wetherspoon also traded more than 7% higher.
The bakery chain Gregg and the fast food chain Domino’s Pizza rose by more than 7%, while the homeware chain Dunelm was another climber and shares in
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