LONDON, Nov 22 (Reuters) - British finance minister Jeremy Hunt announced on Wednesday a bigger-than-expected cut in social security contributions and made incentives for business investment permanent in a bid to speed up the country's sluggish economy.

The pound held broadly steady on the day, while blue-chip stocks stayed in negative territory, although shares in pubs rallied sharply after Hunt unveiled a plan to freeze duty on alcohol until August next year.

UK growth is forecast to reach 0.7% in 2024, Hunt said, citing the latest projections from the Office for Budget Responsibility (OBR), far below a forecast in March for an expansion of 1.8% next year.

MARKET REACTION:

STOCKS: FTSE 100 was down 0.1% on the day, little changed from before the budget. Shares in pub owners FULLER'S , Marston and JD Wetherspoon jumped, rising between 0.5-2.2%.

FOREX: Sterling traded at $1.25010, compared with $1.2543 before Hunt started speaking.

FIXED INCOME: Benchmark 10-year gilt yields were last up 1 basis point on the day at 4.118%, having reversed an earlier decline after Britain's Debt Management Office surprised investors with only a tiny cut to its bond issuance plans.

COMMENTS:

OLI CREASEY, PROPERTY EQUITY ANALYST, QUILTER CHEVIOT, LONDON:

"There were a few bits and pieces that were aimed at increasing planning outcomes and unlocking the bottlenecks in the planning system."

"This doesn't feel like it's the sort of thing that's going to move the needle right now."

"It's not planning that's stopping (developers) from selling homes right now, it's affordability. Inflation dropping and the prospect of a peak in interest rate is perhaps more impactful for the housing market."

PHILIP SHAW, CHIEF ECONOMIST UK AT INVESTEC, LONDON:

"Early days to make a very informed comment, but in overall terms this is a meaningful fiscal stimulus - 14 billion pounds of measures next year is equivalent to 0.5% of GDP. This will help to buttress demand but the question is what effect this has on monetary policy.

It may be excessive to think that it will trigger higher interest rates, but potentially it could delay the point next year when the MPC (Bank of England Monetary Policy Committee) moves to bring rates down. Full expensing should be a major lift to UK industry and to the longer term-macro outlook where improving the UK’s woeful pace of productivity growth is critical."

JATIN ONDHIA, CEO, SHOJIN PROPERTY PARTNERS, LONDON:

"Housing could not be overlooked today, not after Labour had made such a point of championing housebuilding as a key part of its election campaign. Hunt struck some positive notes, such as plans to make it easier for councils to fast-track applications for infrastructure projects, and potentially making it easier for houses to be converted into flats. But overall, this was a lacklustre statement for the property sector, with little of substance to excite those building, buying and investing in UK real estate."

MARC VON GRUNDHERR, DIRECTOR, BENHAM AND REEVES, LONDON:

"Another underwhelming autumn statement where the housing market is concerned. Much like unwrapping a pair of socks on Christmas Day, it lacked imagination and left us feeling largely disappointed.

It’s clear they have run out of ideas when it comes to addressing the current issues plaguing the property market. Hardly surprising when we have housing ministers coming and going more frequently than the postman." (Reporting by EMEA Markets Team; Editing by Yoruk Bahceli)