Barratt cautions over impact of spring statement – Daily Business

Barratt Redrow has cautioned that the forthcoming spring statement could see a repeat of the brake on sales caused by the late budget.

Sales have improved since the turn of the year after the pre-budget speculation about stamp duty failed to appear in Rachel Reeves’ statement.

However, it has alerted the market to possible “impacts from both the spring statement and political uncertainty or volatility created by the local elections [in England]” in May.

Adjusted pre-tax profits — the management’s preferred measure of profitability — fell 14% in the first half to £199.9m from £231.4m in the corresponding period last time. The interim dividend was cut by 9% to 5p.

Shares in the company fell sharply after the opening but closed almost unchanged at 388.2p (down 0.8p).

Stock prices in London closed mixed following news that last month the US labour market added almost double the number of jobs expected.

The FTSE 100 index closed up 118.27 points, or 1.1%, at 10,472.11. 

UK GDP figures for Q4 being announced on Thursday and Grant Slade, economist at Morningstar, said: “We can expect to see annual economic growth of about 1.5% in 2025 for the UK economy.

“Looking ahead, we’re more positive on the UK’s growth outlook, with the Autumn budget proving less of a headwind to near-term economic activity than we’d originally anticipated.

“Notwithstanding, economic growth appears set to soften sequentially in 2026, consistent with the BoE’s still restrictive policy stance and weakening labour market conditions.”