UK equities moved higher as markets responded positively to a budget that signalled a decisive shift in fiscal direction. Instead of temporary reliefs or short-term incentives, the government unveiled a wide-reaching package of tax increases aimed at building long-term financial stability.
The measures introduced were extensive and targeted both income and capital. Personal tax thresholds will remain frozen for several more years, drawing more individuals into higher tax bands as earnings increase. At the same time, the government moved to close off tax-efficient pension arrangements and increase taxes on dividends, capital gains, and high-value assets.
For the first time in years, the UK is attempting to rebuild fiscal headroom without leaning on optimistic growth assumptions or accounting manoeuvres. That shift matters for investors, especially those exposed to sterling, UK sovereign debt, or domestically focused equities.
Fidelity Special Values PLC (LON:FSV) aims to seek out underappreciated companies primarily listed in the UK and is an actively managed contrarian Investment Trust that thrives on volatility and uncertainty.
