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UK Retail Stocks Rally On Government's Household Support Package

Shares in British retailers rallied on Thursday on hopes that a new £15 billion ($19 billion) package of support for households struggling to meet soaring energy bills will encourage them to keep spending.

Britain announced a 25% windfall tax on oil and gas producers' profits alongside the package of household support.

That sparked a rally in retail stocks that have been battered in recent months over the feared repercussions of the cost-of-living crisis.

Shares 

Shares in Ocado  were up 11.2% at 1339 GMT, while Marks & Spencer was 8.5% higher, B&M had added 7.4%, Next was up 6.6% and Primark owner Associated British Foods had risen 3.9%.

British consumers are still facing the biggest squeeze on disposable income since at least the 1950s, with inflation at 9% and set to climb further.

On Wednesday, M&S said Britons would not feel the full force of the cost of living crisis until the autumn. Despite Thursday's rally, M&S shares are still down 35% this year.

News by Reuters, edited by Donna Ahern, Checkout. For more Retail stories, click here. Click subscribe to sign up for the Checkout print edition.

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