Footsie ends the day flat; Sunak hints at tax rises

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The FTSE 100 ended the day flat, but the FTSE 250 rose to the highest in nearly three weeks after signs of progress in Brexit talks boosted market sentiment. 

London’s blue chip index has closed just 7 points higher at 5,949, while the mid cap market closed up 214 points to 17,797.

Chancellor Rishi Sunak has told Sky News that his priority is saving jobs when asked about the possibility of tax rises to pay for the soaring cost of the coronavirus. His emergency spending measures will cost about £200billion this year. 

Meanwhile, growth in the UK construction industry sped up in September with the sharpest rise in new business since before lockdown in March, according to new figures.

The closely followed IHS Markit/CIPS construction purchasing managers’ index (PMI) hit a reading of 56.8 last month, compared to 54.6 in August.  Any reading above 50 represents an expansion in activity.   

In company news, Frankie and Benny’s owner Restaurant Group slipped into a £47.4million first-half loss from a £28.1million profit a year earlier. The firm has also withdrawn its forecast with renewed coronavirus restrictions forcing it to retain a cautious short-term outlook. 

Andrew Bester has announced he will leave his role as chief executive of the Co-op Bank after just two years in charge. Bester oversaw a major digitalistion programme at the bank and an increase in customer satisfaction levels.

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