The Motley Fool

5 Top Budget Winners: Hargreaves Lansdown plc, Taylor Wimpey plc, Barratt Developments plc, Diageo plc & St James’s Place plc

The Chancellor’s pre-election Budget contained well-judged treats for several major voting groups.

First-time buyers, savers, pensioners, Scottish voters and drinkers were all catered for — but which FTSE 100 companies are likely to benefit the most? I’ve selected five stocks that could see an uplift in sales or profits as a result of the Chancellor’s bid for re-election.

Claim your FREE copy of The Motley Fool’s Bear Market Survival Guide.

Global stock markets may be reeling from the coronavirus, but you don’t have to face this down market alone. Help yourself to a FREE copy of The Motley Fool’s Bear Market Survival Guide and discover the five steps you can take right now to try and bolster your portfolio… including how you can aim to turn today’s market uncertainty to your advantage. Click here to claim your FREE copy now!

Money matters

Some of the biggest changes announced today related to savings and pensions. There will be a new flexible ISA that allows savers to withdraw money and pay it back in later in the year without losing their tax-free allowance. Tax on savings interest will also be cut.

However, the big news for investors was that up to 5m people who have already bought annuities will be able to cash them in, presumably with a view to reinvesting the money elsewhere.

The most likely beneficiary of this decision is Hargreaves Lansdown (LSE: HL), whose share price rose by 5.6% after the Budget. Fellow FTSE 100 wealth management firm, St James’s Place (LSE: STJ), is also likely to benefit, and was up by 3.6% this afternoon.

Mine’s a double

The Chancellor stopped short of a politically unacceptable cut to tobacco duty, but he was happy to make an appeal to pub-goers and drinkers, cutting beer duty by 1p per pint and duty on Scotch whisky by 2%.

Shares in Diageo (LSE: DGE) were up by 1.9% shortly after this news, as the firm sells a lot of Scotch whisky in the UK, even though this is only a small part of its global revenue.

Help to Buy

No Budget would be complete without a new measure aimed at supporting the housing market. Today, the Chancellor announced the Help To Buy ISA, which will allow first-time buyers to receive £50 from the government for every £200 they save towards a deposit, up to a maximum savings level of £12,000.

The offer will apply to houses valued at up to £450,000 in London and £250,000 elsewhere.

Unsurprisingly, shares in housebuilders edged higher after the news. The biggest riser in the sector was mid-market builder Taylor Wimpey (LSE: TW), up 2.4%. Taylor Wimpey’s 2014 average selling price of £213k suggests to me that many of its customers could benefit from this initiative. Barratt Developments (LSE: BDEV) was also higher, gaining 1.5%.

Today’s best buys?

Each of these firms offers clear attractions for investors, but today’s news alone isn’t enough to make any one company a buy, in my view.

There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it!

Don’t miss our special stock presentation.

It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about.

They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market.

That’s why they’re referring to it as the FTSE’s ‘double agent’.

Because they believe it’s working both with the market… And against it.

To find out why we think you should add it to your portfolio today…

Click here to read our presentation.

Roland Head owns shares in Diageo. The Motley Fool UK has recommended Hargreaves Lansdown. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.