UK equities traded lower on Monday, with the FTSE 100 down 0.12% in the closing session, amid Chancellor John Healey's plans to cut red tape, accelerate growth, and back startups.
In his pre-Budget speech, Healey emphasized the need to reduce government borrowing to curb inflation, limit legal challenges on infrastructure projects, cut business rules by 25% by mid-2029, and double British unicorns by having the state act as the first customer. As such, the chancellor proposed a 150 million-pound-sterling fund for innovative companies.
On a global scale, investors saw no signs of a reopening of the Strait of Hormuz, which drove oil prices higher. Reports suggested fresh US-Iran strikes on commercial shipping around the Strait of Hormuz, with the US targeting three Iranian oil tankers in response to attacks on US warships.
Investors also focused on a 0.4% drop in British average house prices in August 2026, after a 0.1% uptick in the previous month. The reading marked the first annual decline since November 2023. "The Lloyds House Price Index for August 2026 paints a picture of a market under meaningful pressure from multiple directions: elevated mortgage rates, geopolitical uncertainty pushing up energy prices, and a consumer that is both cautious and increasingly stretched... Sellers are not panicking and cutting prices aggressively; they are simply sitting tight. Buyers, meanwhile, are waiting for clarity on the path of interest rates," RBC Capital Markets said.
In corporate news, Standard Life plc (SDLF.L) climbed 2.57% to the top of the blue-chip index after reiterating all 2026 financial targets, while interim loss attributable to owners of the parent widened to 189 million pounds from 168 million pounds a year ago.
"Adj. operating profit of GBP563m was 4% better than consensus, supported by a mix of better operating result from its key segments," RBC said in another report. "However, net income was impacted by adverse economic variances (-GBP473m), reflecting equity hedging, resulting in a 43% miss - SDLF emphasised prioritising stable SII surplus capital and maintaining predictable dividend, while accepting hedge-related volatility on IFRS results."
On the downside, Unilever (ULVR.L) dropped 1.43% as subsidiary Hindustan Lever held its capital markets day. "HUL accounts for 22% of the market cap of Unilever down from 30% in April and 45% at peak," Deutsche Bank Research said. "The company outlined the significant long-term opportunity in India, though whether consumption is 'inflecting' positively now, we are less certain."
On the economic calendar, the British Retail Consortium's retail sales are due Tuesday, the Royal Institution of Chartered Surveyors' house price balance on Thursday, and gross domestic product, industrial production, and balance of trade on Friday.