Midcap stocks outperformed bluechip index despite new tax rises
Small cap stocks saw a significant boost, led by AIM index
Banks, homebuilders, betting companies, and pubs benefited from budget measures

LONDON, Oct 30 Reuters UK mid cap stocks enjoyed a lift on Wednesday as market players deemed the new Labour government39;s first UK budget to be less punitive on businesses than many had previously feared.

Midcap stocks outperformed the bluechip index, even as UK finance minister Rachel Reeves announced a raft of new tax rises to the tune of 40 billion pounds a year, which would mostly affect businesses.

UK Chancellor Rachel Reeves has delivered a tough but fair budget, much of which was already expected as it had been leaked to the market, said Adrian Gosden, UK equities and fund manager at Jupiter Asset Management in London.

The UK is open for business.

Domesticallyfocussed stocks led a charge higher, with shares of pubs, homebuilders and gambling platforms the biggest beneficiaries.

At 1507 GMT, the midcap FTSE 250 index was up 0.4 having risen as much as 1.7 during the budget, while the FTSE 100 was last down 0.5, barely changed from the day39;s open.

Small cap stocks got an even bigger boost. The FTSE AIM index rose by nearly 4, on course for its biggest oneday rally since April 2020, after the government cut business property relief on AIMlisted shares to 50, rather than scrapping it altogether as investors had feared.

AIM shares have been depressed…