LONDON: Britain's top share index edged up on Wednesday, buoyed by a rally in commodity shares, with trade expected to be quiet ahead of the annual UK budget statement at 1230 GMT.
Finance minister George Osborne has signalled he will not pursue his plans to close costly tax loopholes in the pension system for now, though he may end a five-year freeze on fuel duty. Shares in insurance firms fell this week on speculation that taxes on their premiums might rise again.
Banks, property and tobacco stocks are other sectors that have been affected by budgets in previous years, and might come into focus once more.
But coming shortly before a referendum in June over Britain's EU membership, some strategists said that the budget was likely to be less dramatic than in previous years.
"With this Budget coming in the run-up to the referendum on UK membership of the European Union, we would be surprised to see major policy initiatives announced," strategists at UBS said in a note.
Britain's FTSE 100 was up 15.06 points, or 0.3 percent, to 6,155.03 by 0906 GMT, helped by gains in commodity-related stocks.
Oil prices edged up on Wednesday on an upcoming meeting in Qatar to discuss an output freeze and on expectations of U.S. production declines, while copper steadied as China's government pledged more economic support.
FTSE 350 oil and gas stocks rose 1.7 percent, while miners rose 1.5 percent.
London Stock Exchange was roughly steady after it said it had reached a merger agreement with Deutsche Boerse which could bring potential cost savings of 450 million euros ($500 million) a year for the combined company.
Among fallers, Hikma fell 6.2 percent, its biggest one-day drop since September, after the pharmaceutical firm reported full-year results.
Investors cited a weak revenue outlook as triggering the drop and traders said it could have a negative impact on the rest of the sector.
Fellow drugmaker Shire also fell 3.6 percent, while AstraZeneca and GlaxoSmithKline were both down around 1 percent.
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