The UK's corporate landscape is bracing for a significant shift, with Shadow Business Secretary Andrew Griffith outlining a comprehensive strategy to boost the competitiveness of the London Stock Exchange. This effort follows a trend of major acquisitions, including Mitie's £2.8 billion sale to OCS, making it the eleventh £1 billion takeover on the London Stock Exchange this year alone – and before the anticipated Prologis bid for Segro.
Griffith argues that solely focusing on the London Stock Exchange's competitiveness overlooks the root causes of the issue. He highlights the importance of a thriving public market ecosystem, robust private markets, access to credit, and an environment conducive to new business formation. New registrations at Companies House plummeted by 10% in 2025, underscoring the broader challenge of nurturing new enterprises.
A key tenet of his proposed 'whole of government' approach is restoring confidence for boardrooms and founders. Griffith urged the Prime Minister and Chancellor to rule out any tax increases immediately, citing ongoing speculation as a major source of uncertainty that discourages companies from investing and projecting growth. This move would provide much-needed stability after a period marked by economic uncertainty.
The Shadow Business Secretary also called for tangible actions to alleviate significant cost pressures faced by British businesses, particularly in the areas of energy and employment. He proposed measures such as repealing Labour's Employment Bill, granting immediate consent for projects like Jackdaw and Rosebank, removing the Energy Profits Levy, and announcing an end to carbon taxes. These steps would benefit businesses of all sizes and help reduce the cost of living for consumers.
Finally, Griffith emphasised the need for a fundamental shift in the regulatory landscape, describing current processes as too complex, costly, and slow. He referenced recent proposals from Kemi Badenoch regarding financial regulation, which include ending ring-fencing, relaxing capital adequacy ratios, and reforming the Financial Ombudsman Service. These reforms are crucial for fostering an environment that welcomes wealth creators and ambitious individuals who might otherwise seek opportunities abroad.