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LSE Boss: UK Needs to Back Companies to Stay Home
8 Oct
Summary
- London Stock Exchange urges government to boost UK market attractiveness.
- UK firms are increasingly listing shares in the US over London.
- Proposed solutions include scrapping stamp duty on UK shares.
The London Stock Exchange (LSE) is calling on the UK government to implement measures that encourage domestic companies to remain listed in the UK. LSE CEO Dame Julia Hoggett has expressed concern over the increasing trend of UK firms choosing to list their shares in the United States, warning that this weakens the national economy.
Hogggett stated that if the UK wishes to support its own businesses, it must create structural incentives to invest in the domestic market. She highlighted that the LSE, with approximately 930 companies valued at £4.9 trillion, is losing firms like Just Eat, Tui, and Flutter, which have moved to exchanges in Amsterdam, Frankfurt, and New York respectively.
Last year, the US saw 354 initial public offerings (IPOs) raising $44bn (£33bn), starkly contrasting with London's 23 IPOs that raised £2.1bn. To address this, Dame Julia proposed scrapping the 0.5% stamp duty on UK shares, noting that no such tax applies to foreign stock purchases. She also advocated for reinstating tax credits for domestic investments, a scheme that was in place until 2016.
The Confederation of British Industry has echoed these calls, demanding urgent action, including lighter regulation and better marketing, to halt the exodus of companies from the LSE. The government has declined to comment on potential stock market reforms ahead of the upcoming Budget.
