Budget is political mess but with a silver lining

City firms, banks and even smaller companies have been buoyed by emphasis on growth measures, with the FTSE close to an all-time high. Matthew Bishop and Jeevan Vasagar report

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From the announcement of plans to build London’s biggest office block to the relief that greeted the government's retreat on employment rights, there was evidence last week that business in Britain is not all doom and gloom.

Jamie Dimon, JP Morgan chief executive, said the UK government’s emphasis on growth had been a “critical factor” in the bank’s decision to build a new 3m sq ft tower in Canary Wharf - the bank’s most significant presence in Europe. Goldman Sachs announced after the budget that it would more than double its headcount in Birmingham and increase its financing of Al and digital infrastructure.

The banks had reason to be grateful as the sector escaped higher taxes, and the expansion followed announcements by Microsoft, Google and others that they would invest billions in AI and datacentres in the UK, including a UK version of the Stargate infrastructure project. The UK government has also indicated its commitment to tech with a promise to spend £100m buying emerging chip technology from British startups.