London stocks opened modestly higher on Tuesday, as investors eyed a key vote on Labour’s proposed welfare changes and digested fresh company updates.
The FTSE 100 rose 0.2% to 8,773.94. The FTSE 250 also gained 0.2% to 21,674.72, while the AIM All-Share was up 0.5% at 774.20.
Prime Minister Keir Starmer faces a potential backbench rebellion over planned cuts to welfare, despite concessions aimed at calming opposition. Ministers have promised to shield personal independence payment (PIP) recipients from reforms due in 2026 and rolled back plans to cut the health-related element of universal credit.
However, a statement from Work & Pensions Secretary Liz Kendall on Monday received a lukewarm response from Labour MPs. Disabilities Minister Stephen Timms said only: “I certainly hope it passes,” when asked whether the vote was secure.
Mpac Group plunged 28% after warning of weaker-than-expected second-half revenue. The firm flagged a significant drop in its Original Equipment order book and announced plans to shut its Ohio facility and scale back operations in Canada. The restructuring will result in non-cash impairment charges of around £11.5 million.
Kitwave also slumped 27% after reporting a 19% drop in interim pretax profit to £5.6 million, despite revenue jumping 27% to £376.2 million. Soaring distribution and admin expenses weighed heavily.
The wholesaler warned it no longer expects to offset higher employer national insurance contributions, which will raise costs into the second half. It guided for adjusted operating profit of £38–40.5 million for the year, up to 19% above 2024 levels.
At the top end of the FTSE 100, National Grid rose 1.8% and SSE climbed 1.1% after Ofgem unveiled a draft £24 billion investment plan for Britain’s gas network infrastructure. The regulator said the five-year programme would fund 80 transmission projects and expand grid capacity fourfold.
SSEN Transmission, part of SSE, welcomed the plan but said the framework still lacks clarity to ensure investment is viable. National Grid said it will review the proposals to determine if they offer an “investable overall financial package” and reiterated plans to invest around £60 billion through March 2029.
In the US, Wall Street closed higher on Monday, with the Dow up 0.6%, the S&P 500 and Nasdaq both gaining 0.5%. Analysts at Swissquote^ warned markets are underpricing ongoing risks, including trade tensions, a slowing economy and uncertainty over Fed rate cuts.