Autumn Statement reaction

George Osborne has been in giveaway mode this afternoon, from his tax credit U-turn to increased funding for the Arts Council, but the overall message is one of a chancellor that is sticking to his guns on deficit reduction.

George Osborne
Source: Bloomberg

A figure of 400,000 new homes is a good start to address the nation’s chronic shortage of homes, but it is still well below the annual rate the UK needs. 

The lack of concrete reaction in the market is a sign, perhaps, that most investors are quite happy with the maintenance of the UK economy and its recovery.

Housebuilder shares are off the highs of the session, as some pre-statement exuberance is trimmed back, since the chancellor was unlikely to unveil anything that would stoke runaway house price inflation.

Having steadied the financial ship of state, Osborne now looks to cement his positions as a natural leader for the post-Cameron era. Today’s statement is just one part of that plan.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.