One of the UK’s investment banks has offered some comfort to the beleaguered Chancellor by saying the budget has provided “positive steps” for growth businesses and long-term investors.

In a statement with its interim results, Peel Hunt says that after a prolonged period of pre-Budget speculation, businesses and investors now have greater clarity from which they can start to plan.

“The key measures were generally well received by markets, particularly the creation of additional headroom against the chancellor’s fiscal rules.

“Initiatives such as a stamp duty holiday on IPOs and adjustments to the ISA framework are intended to support UK capital markets and encourage investment in British companies.

“These developments, alongside the ‘Entrepreneurship in the UK’ paper published simultaneously, represent positive steps toward enhancing the UK’s attractiveness for growth businesses and long-term investors.”

It notes that the IPO market in particular has begun to open up following a long subdued period. The changes to the UK’s regulatory regime, particularly with respect to secondary issuances by listed companies, appear to be having a positive impact, it said.

“We expect this to continue once the further changes to the UK’s prospectus regime come into effect in January 2026.

“IPO activity remained low during H1 FY26, although we saw an initial re-opening of the IPO market in September and October 2025, with a number of companies coming to market in London.

“M&A bid activity continued at pace throughout H1 FY26, with 60 transactions announced across the market during the period and there were ten active bids for FTSE 350 companies as at 30 September 2025.”

The company reported group revenue for the period of £74.4m (H1 FY25: £53.8m) with profit before tax coming in at £11.5m (H1 FY25: £1.2m).

Steven Fine, chief executive, said: “The second half has started strongly, with the Group continuing to play leading roles across both M&A and ECM mandates. Consequently, we are confident in meeting market expectations for the full financial year.”