Dame Julia Hoggett, head of the London Stock Exchange, has called on the UK government to implement structural reforms to reverse a trend of major companies relocating their listings overseas. She emphasized that without more favorable investment conditions, Britain risks continued capital flight to international markets, particularly the United States.
The LSE currently lists approximately 930 companies valued at roughly £4.9 trillion, with nearly 40% being international businesses from over 80 countries. However, the market has experienced significant departures in recent years, including takeaway chain Just Eat to Amsterdam, travel company Tui to Frankfurt, and Flutter Entertainment to New York. Additionally, the number of new initial public offerings on the London market has declined substantially, with 23 IPOs raising £2.1 billion last year compared to 354 IPOs raising $44 billion in the United States.
Hoggett attributed the outflow partly to negative sentiment surrounding the UK market, which she characterized as often disproportionate. She advocated for removing the 0.5% tax on share purchases in the UK, noting that no such tax applies to foreign stock acquisitions. She also expressed support for reinstating tax credits for domestic investment, a program that existed until 2016. Hoggett stressed that abundant capital and quality companies exist domestically, and that the core issue involves incentives and perception.
The Confederation of British Industry has similarly urged immediate government intervention, recommending lighter regulation, enhanced marketing efforts, and investor incentives. The government has not confirmed whether stock market reforms will feature in its upcoming Budget announcement, stating that such decisions remain within the chancellor’s purview at fiscal events rather than subjects for routine comment on proposals.
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