London Stock Exchange Chief Urges UK Government to Boost Listings

The head of the London Stock Exchange (LSE) has urged the UK government to implement measures aimed at revitalizing the country's stock market and encouraging more companies to list domestically. Julia Hoggett, CEO of the LSE, advocated for the abolition of stamp duty on share purchases and the reintroduction of tax credits for domestic investing.

Hoggett stated that the current system creates disincentives for investing in UK companies, contrasting it with the absence of such taxes on overseas shares. She highlighted that this disparity encourages investors to direct capital towards markets like the United States, while British firms opt for initial public offerings on foreign exchanges.

"We charge them to buy Aston Martin but we don’t charge them to buy Tesla or Porsche," Hoggett remarked in an interview with the BBC. "Last time I looked, Aston Martin actually employed people in this country. It is a pernicious tax and it undermines the growth of the UK economy."

Several high-profile companies have recently moved their listings away from London or chosen foreign exchanges for their IPOs. These include the owner of Paddy Power, Flutter, which moved to New York, and travel giant Tui, which is now listed in Frankfurt. Chip giant Arm Holdings also opted for a Wall Street IPO over London, and data center group Nscale recently filed for a New York listing.

Hoggett proposed a phased approach to scrapping stamp duty, beginning with its removal for investments made through ISAs or for eligible pension funds. She also called for the reinstatement of the dividend tax credit, eliminated in 2016, and inheritance tax incentives for investing in UK companies. Hoggett estimated that such a package could unlock approximately £122 billion in investment over the next six to eight years.

She expressed concern over a prevailing downbeat sentiment towards the UK market, despite the availability of strong companies and capital. "We need to stop throwing shade at ourselves as a nation," Hoggett said. "It’s a national habit."

Industry figures have largely supported Hoggett's calls. Charles Hall, head of research at Peel Hunt, stated that accelerating domestic investment would foster economic growth and tax generation. Julian Jessop, an economics fellow at the Institute of Economic Affairs, agreed that stamp duty hinders economic activity but expressed skepticism about the broader effectiveness of wider incentives, suggesting that improving the UK's fundamental economic conditions would be a more direct approach to attracting investment.