© Provided by The iBritain's Chancellor of the Exchequer Rishi Sunak (Photo: Tolga Akmen/AFP)
The FTSE 100 has jumped more than 1 per cent ahead of Rishi Sunak's Spring Budget, which is expected to bring in a host financial reforms aimed at getting the British economy back to full health after the coronavirus lockdown.
Hotels group Whitbread topped the leaderboard amid suggestions the Chancellor will extend the furlough scheme and business rates holiday, boosting a battered leisure and hospitality sector.
As part of a three-point plan to support the nation in the coming months, the Chancellor has confirmed he will build on the £280bn of support by extending furlough support until September.
Susannah Streeter, senior investment and markets analyst at broker Hargreaves Lansdown, said: "With business lifelines expected to be extended and a dose of extra support likely to be administered to ailing shops, pubs and restaurants, there has been a bouyant start for hospitality and landlords in early trading in London.
"Airlines, who have relied heavily on the furlough scheme are also higher given the likelihood it will be extended into the Autumn."
There are also expected to be announcements on self-employed support, the stamp duty holiday and Universal Credit.
Russ Mould, a director at investment platform AJ Bell, said: "On Budget day the positive performance of the FTSE 100 may help put a little more pep in Rishi Sunak's step as he makes the journey from Number 11 Downing Street to the House of Commons.
"Pre-Budget leaks have raised hopes for an extension to the significant support provided to the UK economy by Sunak, so anything short of this could result in some disappointment."
The Chancellor is delivering his Budget a week earlier than last year's, which fell on 11 March. It follows on immediately after Prime Minister's Questions at 12.00pm, with Mr Sunak's speech expected to start at around 12.30pm.
Giles Coghlan, chief currency analyst at broker HYCM, said: "The FTSE is bullish in the lead-up to the Chancellor's speech. Blue chips are making gains, and with the Government confirming the extension of multiple Covid relief packages, I expect a mini-rally followed by a strong afternoon of trading across the FTSE 100."