Markets rose on the back of the budget as traders welcomed the news that the UK economy is expected to return to pre-Covid levels six months earlier than first thought.
By 2.30pm the FTSE 100 was up 0.5% and the UK-focused FTSE 250 was up 1.3%.
Housebuilders saw the biggest gains in the share prices, as investors piled in on the back of the news that the stamp duty holiday would be extended until June and 95% mortgages will make a significant return.
The stamp duty holiday on the first £500,000 of the value of a property will now end on June 30, and a nil-rate band will remain for the first £250,000 until the end of September.
Housebuilders enjoying shares rising included Crest Nicholson up 6.3%; Persimmon up 5.9%; Barratt Developments up 5.7%; Taylor Wimpey up 5.1% and Berkeley Group up 3.1%.
Traders were particularly pleased with the “super deduction”, which will allow businesses to offset 130% of their investment in machinery and equipment against their tax bill.
This was weighed against the rises in corporation tax to 25% from 2023 for companies with profits in excess of £250,000.
Neil Wilson, financial analyst for Markets.com, said: “A corporation tax increase to 25% by 2023 is still low in G7 terms but a bit tougher than expected.
“Brussels can rest easy – London is not going to be Singapore a cote de la Manche.
“Not many companies will pay this – about 10% – and a super deduction for tax for losses is a punchy move designed to encourage spending by businesses. Companies will be able to reduce tax bills by 130% of business investment.”