Dame Julia Hoggett, chief executive of the London Stock Exchange (LSE), has called for increased incentives for British people to invest in UK-listed companies. She told the BBC that the government needs to make the UK stock market more appealing to investors, otherwise large firms will continue to seek growth opportunities abroad.
In recent years, a number of significant companies have either left the London market, are considering a move, or have been acquired by foreign private investors. Examples include Just Eat, which moved to Amsterdam, Tui, which opted for Frankfurt, and Flutter, owner of Paddy Power, which now trades in New York.
The number of new companies listing shares in London has also declined. Last year, there were 23 initial public offerings (IPOs) on the London market, raising £2.1bn. In contrast, the US recorded 354 IPOs, raising $44bn (£33bn). Dame Julia suggested that negative sentiment about the UK market, which she believes is often exaggerated, has contributed to companies leaving. She advocates for scrapping the 0.5% tax Britons pay when buying UK shares, noting no such tax applies to foreign stock purchases, and supports tax credits for domestic investment.
The Confederation of British Industry (CBI) has also urged immediate action to address the departure of firms from the LSE, recommending lighter regulation, improved marketing, and investor incentives. The government has not confirmed if stock market reform will be part of this month's Budget, with a spokesman stating that tax decisions are for the Chancellor to announce at fiscal events.