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FTSE 100 down 0.6%, FTSE 250 up 0.13%

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Reeves considering tax increases and spending cuts -

reports

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Personal goods stocks up as LVMH drives luxury rally

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Entain ( GMVHF ) bottoms FTSE 100 after Q3 gaming revenue growth

slows

Oct 15 (Reuters) -

London's FTSE 100 slipped on Wednesday as investors weighed

mounting fiscal concerns, pointing to sticky inflation and

potential tax hikes by the UK government, while digesting a

mixed bag of corporate updates.

The benchmark FTSE 100 was down 0.5% by 1013 GMT,

while the domestically focused FTSE 250 was up 0.13%.

On Tuesday, the International Monetary Fund slightly raised

its growth forecast for Britain this year but lowered it for

2026. It said the Bank of England must be "very cautious" while

considering future rate cuts as the country's inflation is

projected to be the highest among the Group of Seven advanced

economies in both 2025 and 2026.

Meanwhile, Britain's finance minister Rachel Reeves said she

was looking at both tax rises and spending cuts for her budget

on November 26.

Economists expect Reeves will need to raise about 30 billion

pounds ($40.1 billion) through tax increases in the budget,

after the government's borrowing costs jumped more than

expected, a plan to cut welfare costs was dropped and signals

that growth forecasts will need to be lowered.

In the market, LVMH, a bellwether for the luxury

sector, reported better-than-expected sales in the third

quarter, which positively impacted other luxury stocks.

UK's Burberry ( BBRYF ) rose 6.6% to the top of the FTSE 100

while the broader personal goods sector

outperformed peers by 6.2% gain.

IAG rose 1.3% after Morgan Stanley initiated

coverage on British Airways and Iberia owner with an

"overweight" rating, citing its lead among European airlines in

profitability and cash returns.

PageGroup ( MPGPF ) rose 7.2% to the top of the FTSE 250

after the recruiter posted third-quarter results that beat

profit expectations.

On the flip side, Entain ( GMVHF ) fell to the bottom of the

FTSE 100, down 3.3%, after the British gambling firm reported a

slowdown in gaming revenue in the third quarter.

An index of healthcare stocks led sectoral

declines with a 1.9% fall. Drugmaker AstraZeneca slipped

2.3%.