Drax plunges on Budget blow as FTSE 100 rises

(Close): Shares in UK power producer Drax plunged 28% in Wednesday trading after Chancellor George Osborne said the Climate Change Levy exemption for renewable electricity would be removed.

Drax said it was renewing the impact of the move, announced in the Budget, adding that it was "displeased".

Overall, the FTSE 100 rose 0.91% to 6,490.70, with shares in Barclays among the top gainers.

The bank's shares rose 2% after it fired chief executive Antony Jenkins.

Another Budget announcement sent shares in housebuilders down sharply, with Barratt, Taylor Wimpey and Persimmon falling 5.7%, 5% and 4.7% respectively.

The falls came in reaction to the news that mortgage interest relief for buy-to-let homebuyers is to be restricted to the basic rate of income tax.

On the currency markets, the pound fell 1.3% against the euro to €1.3865 and was 0.66% lower against the dollar at $1.5360.