The FTSE 100 index surged past the 10,000-point mark for the first time today, hitting a significant milestone. Within the initial trading hour, it reached 10,046 points before experiencing a slight pullback after the new year break.
Comprising the largest 100 UK-listed companies, the FTSE 100’s performance holds importance not only for investors but also for individuals with pension investments. This uptrend follows the index’s strong 21.5% growth in 2025, particularly driven by notable increases in share prices of precious metal mining, defense, and financial services firms.
Investor interest in the stock market has been on the rise amid global political uncertainties and sluggish economic growth in the UK. The FTSE 100 closed 2025 at 9,931.38, surpassing previous record highs multiple times throughout the year and outperforming several European and US counterparts.
Making a historic breakthrough, the FTSE 100’s climb above 10,000 points marks a significant event in 2026, reflecting the index’s positive trajectory since its inception in 1984. Chancellor Rachel Reeves expressed optimism, highlighting the confidence in Britain’s economy signaled by this achievement.
In a move to promote stock market investments, Chancellor Reeves announced changes to the cash ISA annual limit during her last November Budget speech. The adjustments set a £12,000 limit for cash ISA contributions per tax year for individuals under 65 starting from April 2027, down from the current £20,000 limit. However, over-65s will retain the £20,000 allowance for cash ISAs, maintaining an overall £20,000 ISA limit that allows a split between cash ISAs and stocks and shares ISAs.