LSE boss urges UK to back local firms amid US exodus
London Stock Exchange CEO Dame Julia Hoggett urges the UK government to scrap share taxes and boost incentives after major firms list in the US.
Stock photo for illustration only, not from the actual event
- LSE CEO warns negative market sentiment has pushed major companies to seek growth abroad
- London saw only 23 IPOs raising £2.1bn last year compared to 354 in the US
- Calls on the government to scrap the 0.5% share purchase tax and offer retail tax credits
The boss of the London Stock Exchange (LSE) has warned that the UK must step up support for its own companies, as a growing number of domestic firms bypass the local market to list their shares in the United States instead, according to an interview with BBC Business.
Dame Julia Hoggett stated that the government needs to make investing in the UK stock market significantly more attractive, or risk large corporations continuing to look overseas for their next phases of expansion. She emphasized that the London market needs to remove regulatory brakes to revive domestic economic activity, warning that ongoing departures weaken the economy by shrinking tax revenues and depressing business valuations.
The LSE main market currently consists of approximately 930 companies with a combined market value of about £4.9 trillion, with nearly 40% originating internationally from over 80 countries. However, several prominent firms have delisted or relocated in recent years, including takeaway giant Just Eat moving to Amsterdam, travel operator Tui opting for Frankfurt, and Flutter—the parent company of Paddy Power—shifting its primary trading to New York.
Stock photo for illustration only, not from the actual event
Concurrently, the volume of initial public offerings (IPOs) launching in London has plummeted. Last year recorded only 23 IPOs raising £2.1 billion on the London market, whereas the US capital markets saw 354 IPOs raising $44 billion (£33 billion). This disparity aligns with a surge of British investment capital flowing directly into US stocks in search of higher 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 Hoggett, CEO of the London Stock Exchange
Hoggett noted that while there is no shortage of exceptional companies or available capital within the country, exaggerated negative sentiment surrounding the UK market has historically driven firms away. She argued that British citizens require stronger incentives to allocate their investment funds into domestic equities rather than foreign alternatives.
The migration of major British enterprises and high-growth technology firms to overseas exchanges highlights persistent structural weaknesses in the UK capital market, particularly regarding liquidity and valuation multiples compared to Wall Street. By pushing for specific fiscal reforms—such as eliminating the 0.5% stamp duty reserve tax on domestic share purchases—LSE leadership aims to pressure policymakers into rejuvenating London's competitive standing before further market share erodes.
Her proposals include urging the government to abolish the 0.5% tax paid by Britons when purchasing UK shares, noting that foreign stock purchases carry no equivalent levy. She also expressed support for reintroducing tax credits for domestic investors, a scheme that remained active in the UK until 2016. Meanwhile, business lobbying organization the Confederation of British Industry has pressed for urgent action, stating that lighter regulation, enhanced marketing, and investor incentives are vital to halting the outflow.
Source: BBC Business
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