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The head of the London Stock Exchange (LSE), Dame Julia Hoggett, has emphasized the need for the UK to better support its own companies, especially as many are increasingly choosing to list their shares on American stock markets rather than domestically. Speaking to the BBC, she stressed that the government must create more appealing conditions for investment within the UK stock market to prevent major firms from pursuing growth abroad. Over recent years, numerous large businesses have either exited the London market, considered leaving, or have been acquired by private foreign investors, raising concerns about the long-term impact on the UK economy through reduced tax income and diminished business valuations.
Dame Julia highlighted the importance of structural incentives to encourage domestic investment, echoing calls from top government officials to “back Britain.” She urged that “we need to take the handbrake off” to make investing in the UK more attractive. Currently, the LSE’s primary market comprises roughly 930 companies, valued collectively at about £4.9 trillion. Nearly 40% of these companies are international, originating from over 80 countries. Despite this diversity, some well-known firms have delisted or shifted their listings overseas in recent years. For instance, the takeaway service Just Eat moved to the Amsterdam stock exchange, travel company Tui listed in Frankfurt, and Flutter, the owner of Paddy Power, now trades on the New York Stock Exchange.
The pace of new companies listing on the London market has also diminished substantially. Last year, the UK saw just 23 initial public offerings (IPOs), raising £2.1 billion, whereas the US boasted 354 IPOs with $44 billion (approximately £33 billion) raised. This disparity aligns with a sharp increase in UK investment capital flowing into US equities as investors seek better returns. “We talk as a nation about wanting growth in every postcode, but at the moment, a lot of us are funding growth in every zip code,” Dame Julia remarked. She added that there is neither a lack of excellent companies nor a shortage of capital in the UK, but that negative perceptions—often overstated—have historically driven companies away. “We need to stop throwing shade at ourselves as a nation… it’s a national habit,” she said.
To encourage more domestic investment, Dame Julia advocates for the removal of the 0.5% tax applied to UK share purchases, pointing out that this tax does not apply when Brits buy foreign stocks. Additionally, she supports reintroducing tax credits for investments in UK companies, a policy that was in place until 2016. The Confederation of British Industry has also called for faster government action to stem the departure of firms from the London Stock Exchange, suggesting that lighter regulation, improved marketing, and investor incentives could help reverse the trend. When asked about potential stock market reforms in the upcoming Budget, a government spokesperson declined to comment on speculation, noting that tax decisions are traditionally announced by the chancellor during formal fiscal events
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