The chief executive of the London Stock Exchange has called for stronger government backing of domestic companies, citing concerns that an increasing number of major firms are choosing to list their shares in the US rather than in London.
Dame Julia Hoggett stated in an interview that the government must create structural incentives to make UK equity markets more appealing to businesses and investors. She emphasized that without such measures, large companies would continue seeking growth opportunities abroad. The LSE’s main market currently comprises approximately 930 companies valued at roughly £4.9 trillion, with nearly 40% being international firms from over 80 countries.
In recent years, the trend has accelerated, with notable departures including takeaway service Just Eat, which relocated to Amsterdam; travel operator Tui, which moved to Frankfurt; and betting and gaming company Flutter, now trading in New York. Simultaneously, the number of initial public offerings on the London exchange has declined significantly. Last year saw 23 IPOs in London generating £2.1bn, contrasting sharply with 354 IPOs in the US that raised $44bn.
Hoggett attributed some of the market’s challenges to negative perception and self-criticism within the UK business community. She proposed specific policy changes, including elimination of the 0.5% tax on share purchases and reintroduction of tax credits for domestic investment, both of which existed previously. The government has not yet indicated whether stock market reforms will feature in its Budget announcement later in the month, stating that tax decisions remain the chancellor’s prerogative.
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