UK stock market surges on tax cut proposal and economic growth forecast

UK shares closed higher on Wednesday, with the domestically-focussed FTSE midcap index at a two-month peak, as the government bet on tax cuts to revive its election chances, while Premier Foods surged to a nearly 13-year high.

The blue-chip FTSE 100 (.FTSE), opens new tab ended up 0.4%, while the mid-cap FTSE 250 (.FTMC), opens new tab rose 1.1% to its highest level since early January.

Finance Minister Jeremy Hunt’s pre-election budget revealed tax cuts, an annual economic growth forecast of 0.8%, and he added that the Bank of England’s 2% inflation target would be achieved in a few months.

Fidelity Special Values PLC (LON:FSV) aims to seek out underappreciated companies primarily listed in the UK and is an actively managed contrarian Investment Trust that thrives on volatility and uncertainty.

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