FTSE up despite hit for UK housebuilders from budget reforms - London Report

A RALLY in Barclays after a management shake-up helped Britain’s top share index gain yesterday, but housebuilders took a hit from reforms introduced by finance minister George Osborne.

The FTSE 100 closed 0.9 per cent up at 6,490.70 after posting its lowest close since mid-January in the previous session.

However, London-exposed housebuilders and estate agents tumbled after Osborne said the government will tighten “non-dom” tax rules and abolish the status which gives tax advantages to people officially domiciled abroad and has caused controversy for years.

Barratt Development, Persimmon and Taylor Wimpey dropped between 5.7 and 4.7 per cent, making up the top three FTSE 100 losers. Among the gainers, Britain’s biggest defence contractor BAE Systems added 3.5 per cent after the government said it would commit to NATO’s defence spending pledge for the next five years.

Barclays was also one of the top gainers, rising two per cent after ousting its chief executive Antony Jenkins in a surprise move.