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Britain’s Chancellor of the Exchequer, George Osborne.
Britain’s Chancellor of the Exchequer, George Osborne.
(STEFAN WERMUTH/REUTERS)

Financial Times

Winners and losers in U.K. corporate tax cut

Lex is a premium daily commentary service from the Financial Times. It helps readers make better investment decisions by highlighting key emerging risks and opportunities.

Should stock investors care about the U.K. budget? For all the hoo-ha over this annual speech by the Chancellor of the Exchequer, it seems not. Share prices between budgets move to entirely different tunes to those hollered across the chamber. For example, selling after Alistair Darling’s gloomy speech in April of 2009 would have missed a 40-per-cent rally in the FTSE 100-stock index over the next 12 months. Conversely, the market plummeted by more than a quarter despite Gordon Brown’s upbeat assessment of economic growth in 2002.