FTSE 100 gains as weak pound lifts export-heavy consumer staples

(Reuters) - London's FTSE 100 index rose on Monday, led by shares of dollar-earning consumer staple companies after sterling tumbled to record low on worries the new government's economic plan will stretch Britain's finances to the limit.

The export-oriented FTSE 100 gained 0.5%, while the more domestically oriented FTSE 250 declined 0.7%.

Oil stocks and mining stock fell 0.4% and 1.1% respectively on recessionary fears hitting demand for raw materials. [O/R] [MET/L]

The sterling nosedived to 1985 lows as investors ran to safer currencies after the new government unleashed historic tax cuts, and the biggest increase in borrowing since 1972 to pay for them. [GBP/]

Consumer staples like Unilever and British American Tobacco added 3.5% and 1.1%, respectively. Unilever also said CEO Alan Jope plans to retire at the end of 2023.

Banking stocks fell 1.3%.

GSK plc rose 2.0% after the drugmaker named luxury fashion brand Burberry's Julie Brown as its new chief financial officer to succeed Iain Mackay.

(Reporting by Johann M Cherian in Bengaluru; Editing by Savio D'Souza)