UK Stock Market Today: FTSE 100 Ends Flat as Mid‑Caps Rally After Budget

The UK stock market paused for breath on Thursday, 27 November 2025, as investors digested Rachel Reeves’s tax‑raising Autumn Budget and traded into the US Thanksgiving holiday in relatively thin volumes.

The blue‑chip FTSE 100 index closed almost unchanged, up just 2.35 points (0.02%) at 9,693.93, while the domestically focused FTSE 250 outperformed with a 0.9% gain to 22,091.47. The AIM All‑Share added 0.8% to 748.99, underscoring stronger risk appetite further down the market cap spectrum. ^[1]

According to index data, the FTSE 100 has now risen about 1.6% this week and is up more than 17% in 2025 to date, having traded as high as roughly 9,930 and as low as around 7,545 earlier in the year. ^[2]

Post‑Budget Drift as Markets Wait for the Next Catalyst

Thursday’s session followed a strong reaction to the Autumn Budget on Wednesday, when both the FTSE 100 and FTSE 250 rallied as investors judged the fiscal package “tolerable” and more measured than feared. ^[3]

Analysts noted that UK assets “continue to hold up well in the wake of the budget,” with global indices generally drifting in the absence of US trading because of Thanksgiving. ^[4]

Key macro takeaways shaping UK stocks today:

Budget hangover, not panic:
Citi and other houses highlighted that Reeves effectively doubled fiscal headroom to around £22 billion while front‑loading spending and back‑loading some revenue measures, pushing tougher questions about tax and growth further into the future. ^[5]
Rate‑cut hopes build:
With the budget seen as broadly credible and inflation pressures easing, traders are increasingly pricing in a Bank of England rate cut as soon as the next meeting, a view echoed by analysts at Scope Markets who point to improved confidence around household finances. ^[6]
Gilts wobble after big rally:
UK government bonds slipped as investors reassessed the growth vs. borrowing trade‑off after the budget, interrupting a days‑long rally even as the “fiscal risk premium” on UK debt is seen shrinking versus earlier in the year. ^[7]
Sterling holds firm:
Despite the softer gilt market, the pound traded around $1.325 at the London close, slightly above Wednesday’s level, reflecting ongoing confidence that UK policy remains on a more predictable path. ^[8]

With US markets closed for Thanksgiving, liquidity was thinner than usual and London largely tracked European peers, which were mixed to slightly positive on the day. ^[9]

FTSE 100: Banks and Utilities Lead; Miners and Tobacco Lag

Despite the flat headline index, there were clear winners and losers within the FTSE 100.

Budget “winners” extend their run

Banks and selected financials, seen as among the biggest beneficiaries of Reeves’s decision not to impose fresh sector‑specific taxes, continued to attract buyers:

Lloyds Banking Group rose 3.0%
NatWest Group climbed 2.3%
Barclays advanced 1.7%
St James’s Place gained 2.0%, with UBS highlighting that its lack of reliance on interest from cash ISAs makes it a beneficiary of reforms aimed at boosting stocks-and‑shares ISA investing and potentially lower rates ahead. ^[10]

These moves add to strong gains earlier in the week, as investors reassess UK financials in light of rising expectations for rate cuts and somewhat reduced political risk premium.

Defensive utilities also benefited from post‑budget positioning. Centrica climbed 2.8%, building on a broader shift toward stocks offering domestic cash flows and dependable dividends. ^[11]

Miners, energy and consumer staples on the back foot

The day’s laggards were primarily in sectors sensitive to global growth and changing consumer habits:

Imperial Brands slid 2.4%, the worst blue‑chip performer
Burberry fell 2.0%, as luxury names continue to wrestle with slower demand from high‑end consumers
Rio Tinto dropped nearly 2%, adding to recent pressure on mining stocks amid concerns over Chinese demand
3i Group and Antofagasta also finished in the red. ^[12]

Energy names were mixed. Earlier in the session, BP and other oil majors traded lower amid a softer crude backdrop and ongoing debate over global demand, though some of that weakness moderated into the close. ^[13]

Mid‑Caps Outperform: Pennon Surges, Unite Slumps

The FTSE 250 stole the show, adding nearly 1% as stock‑specific stories dominated the mid‑cap space. ^[14]

Pennon returns to profit – and to investors’ good books

Water utility Pennon Group jumped around 4.5% after reporting a “strong return to profitability” in the first half of its 2025/26 financial year:

Statutory pre‑tax profit: £65.9m vs a £38.8m loss a year earlier
Revenue: up about 25% to £658.1m
Management flagged disciplined cost control and a step‑change in underlying EBITDA as restructuring savings begin to flow. ^[15]

Investors did have to digest a cut to the interim dividend to 9.26p from 12.14p, partly reflecting a recent rights issue, but the strong profit rebound overshadowed that decision and supported the share price. ^[16]

Unite Group hit by softer student demand

Student accommodation specialist Unite Group moved the other way, dropping around 3.5% after warning that adjusted earnings per share will fall 7%–10% in 2026, citing:

Lower student occupancy
Softer rental income in some cities
Delays to development completions
Higher finance costs

The firm now expects occupancy in the 2026/27 academic year to sit between 93% and 96%, versus 95.2% for 2025/26, with rental growth forecast to slow to 2%–3% from 4%. ^[17]

Analysts at Panmure Liberum described the guidance as a “huge cut” versus their prior EPS path, and shares fell to their lowest level since 2015, underscoring how quickly sentiment can turn in previously hot specialist property segments. ^[18]

Gambling Stocks Count the Cost of Tax Changes

One of the day’s biggest themes remained the UK government’s sharp increase in online gambling taxes, unveiled in the budget and fleshed out in detail this morning.

Flutter warns on multi‑year earnings hit

Flutter Entertainment, owner of Paddy Power and Betfair, told investors it expects the new regime for online gaming duty to hit group earnings by about £242 million in 2025‑26 and £408 million in 2026‑27 before mitigation. ^[19]

Key tax changes include:

From April 2026: UK iGaming duty jumps 19 percentage points to 40%
From April 2027: Online sports betting duty (excluding horseracing) rises 10 percentage points to 25% ^[20]

Flutter plans to offset roughly a third of the impact through cost savings and reduced promotional spend by 2027, aiming for mitigation of around 40% of the gross hit over time. ^[21]

Despite the sobering numbers, Flutter’s shares rose about 2.2%, suggesting investors had largely anticipated tougher taxation and were reassured by the company’s mitigation plans. ^[22]

Mixed fortunes across betting names

Elsewhere in the sector:

Evoke (owner of William Hill) slid just over 4%, with its CEO attacking the tax increases as “ill‑thought‑through” and potentially damaging for the regulated market.
Entain, owner of Ladbrokes and Coral, fell around 0.7%.
Playtech, a key supplier of betting technology, surged 8.6% after reaffirming its 2026 guidance, making it one of the biggest risers on the day. ^[23]

The diverging share moves underline how investors are differentiating between operators facing direct tax burdens and technology providers whose revenue is more diversified geographically.

Retail and Consumer Names: Debenhams & Halfords in Focus

Debenhams rockets on optimism

Among more speculative plays, online retailer Debenhams Group (LSE: DEBS) was one of the standout movers, with its shares soaring more than 40% at one stage after upbeat trading commentary and growing interest from retail investors. ^[24]

Debenhams also appeared near the top of trading leaderboards on retail platforms, reflecting heightened short‑term interest following recent volatility.

Halfords pedals through a tougher consumer backdrop

In the more traditional retail space, Halfords reported a 1% rise in underlying first‑half pre‑tax profit to £21.2 million, supported by a 9% jump in bicycle sales and steady growth in its car maintenance arm, even as statutory profit dipped modestly. ^[25]

Other key points from Halfords’ update:

Like‑for‑like group sales: up 4.1%
Strategy: management is pursuing a three‑phase “Optimise, Evolve, Scale” plan, aiming to grow higher‑margin services
Outlook: full‑year underlying pre‑tax profit guidance reaffirmed at £36–40.7m for FY26 ^[26]

Peel Hunt described current trading as “a shade below” the first half but broadly in line with sector trends, reinforcing the message that UK consumers remain cautious but are still spending selectively on value and essential services. ^[27]

What UK Investors Are Trading Most Today

Flows data from interactive investor’s Daily Trading Flash gives a snapshot of where retail money was most active on Thursday morning. The 10 most‑traded shares on its platform included: ^[28]

Lloyds Banking Group (LLOY) – still a core retail favourite; only about 18% of trades were buys, suggesting some profit‑taking after the recent bank rally
Debenhams Group (DEBS) – around 55% of trades were buys, pointing to speculative dip‑buyers and momentum traders piling in
Legal & General (LGEN) – nearly 47% buy trades, highlighting demand for high‑yield financials
Serica Energy (SQZ) – about 75% buy trades as investors position around energy volatility
Taylor Wimpey (TW.), Rolls‑Royce (RR.), BP (BP.), NatWest (NWG), Aviva (AV.) and Glencore (GLEN)rounded out the list

The mix of banks, insurers, energy producers and cyclical industrials underscores how retail investors are gravitating toward sectors perceived as budget winners, dividend payers, or beneficiaries of lower interest rates in 2026.

Big Picture: Where the UK Market Stands After the Budget

Putting today’s quiet session in context:

The FTSE 100 is near record highs, up over 17% this year, helped by earlier weakness in sterling, a global equity rebound and renewed foreign interest in “cheap” UK valuations. ^[29]
Market strategists point to wider stock‑market breadth, with gains no longer confined to a handful of global mega‑caps, which is typically a healthier backdrop for equity investors. ^[30]
Money markets now imply a high probability of at least one Bank of England rate cut in the coming months, with investors watching incoming inflation and wage data closely. ^[31]

Thursday’s moves suggest that, for now, investors are comfortable but cautious: rewarding companies that can grow earnings or defend margins in the new tax and rate environment, while punishing those exposed to structural demand shifts, such as parts of the student housing market.

What to Watch Next

Looking ahead to Friday, traders will be watching: ^[32]

Inflation data from France and Germany, which could shape expectations for further ECB cuts and, by extension, European risk appetite.
Canadian GDP data, as a barometer of global demand and developed‑market growth.
UK corporate updates, including half‑year results from Foresight Environmental Infrastructure, which will shed more light on investor appetite for green infrastructure assets.

In the absence of US trading today, much of the real test for UK equities may come when Wall Street returns from its holiday and global volumes normalise.

Important Note

This article is for information and news purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Markets can move quickly and figures quoted are based on information available at the London close on 27 November 2025.

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