The UK's position as a global financial hub is at risk of further erosion if Prime Minister Andy Burnham fails to take drastic action to address the crippling burden of share stamp duty. With London plummeting to 23rd in the global Initial Public Offering (IPO) league table, trailing behind markets such as Mexico and Oman, the city's once-prestigious status is increasingly under threat.
In 2025, the amount of capital raised on the London Stock Exchange dwindled to just $11.7 billion, a stark contrast to the $51 billion secured two decades prior. This precipitous decline has led to a string of high-profile companies delisting from London or switching their primary listings to overseas markets, including Flutter, Ferguson, and Wise. Meanwhile, the FTSE 100 has lagged far behind its American counterpart, the S&P 500, which boasts an average annual rise of approximately 15% over the past two decades.
Advocates of abolishing the 0.5% share stamp duty argue that this tax artificially suppresses share prices, resulting in companies receiving less equity when issuing shares and investors securing less value for their money. A 2024 study by the Institute for Fiscal Studies (IFS) found that removing the duty could increase share prices by up to 1.1%, while also freeing millions of individuals with pensions or direct shareholdings from being taxed every time shares change hands.
Modelling has indicated that a more competitive City, unshackled from this burdensome tax, could attract significant investment into British companies, stimulating growth, innovation, and job creation. Furthermore, estimates suggest that abolishing stamp duty on shares could boost the UK's GDP by up to 0.7%, driving broader economic expansion, higher wages, and enhanced public services.