London Stock Exchange Chief Urges UK to Back British Firms as Listings Exodus Accelerates

The head of the London Stock Exchange has called on the UK government to introduce structural incentives that would make investing in British companies more appealing, warning that without such measures, an increasing number of firms will continue to seek growth opportunities overseas. Dame Julia Hoggett, who leads the LSE, told the BBC that the country must do far more to support its own businesses at a time when a growing number are choosing to list their shares in the United States rather than at home.

In an interview with the BBC's Big Boss podcast, Dame Julia argued that the government needed to make it "more attractive" to invest in the UK stock market. She said that if big companies continued to look abroad for their next stage of growth, the British economy would suffer. Over the past few years, scores of major firms have either left the London market, are considering a move, or have been acquired by private foreign investors. The concern is that this trend weakens the UK economy by reducing tax revenues and depressing business valuations.

Dame Julia's message was blunt: "If we want Britain to back Britain, which is what I hear the chancellor and the prime minister saying, then let's make sure that we're creating structural incentives to do so," she told the podcast. "We need to take the handbrake off." Her comments reflect growing anxiety about the competitiveness of the UK's capital markets, particularly as the United States continues to attract companies with its deeper pools of capital and higher valuations.

The LSE's main market currently comprises around 930 companies, with a combined market value of approximately £4.9 trillion. Nearly 40% of these businesses are international, originating from more than 80 countries. However, in recent years, a steady stream of firms have delisted or relocated their listings away from London. Among the notable departures are takeaway chain Just Eat, which moved to the Amsterdam stock exchange; travel giant Tui, which opted for Frankfurt; and Flutter, the owner of Paddy Power, which now trades in New York.

Meanwhile, the number of companies choosing to make their stock market debut in London has fallen sharply. Last year, there were just 23 initial public offerings on the London market, raising £2.1 billion. By contrast, the United States, which has much larger capital markets, saw 354 IPOs, raising $44 billion, equivalent to about £33 billion. This gap underscores the challenge London faces in retaining its status as a leading global financial centre.

The decline in London listings has coincided with a significant rise in UK investment money flowing into US stocks as investors search for better returns. Dame Julia highlighted this irony, saying: "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." She added that there was "no shortage of great companies and no shortage of capital" in the UK. The problem, she suggested, lies elsewhere.

According to Dame Julia, negative sentiment about the UK market, which is often exaggerated, has contributed to companies leaving in the past. She urged the country to change its attitude, saying: "We need to stop throwing shade at ourselves as a nation... it's a national habit." Her remarks echo concerns that a persistently downbeat narrative about the British economy is undermining confidence and driving businesses away.

To reverse the trend, Dame Julia is advocating for specific policy changes. She wants the government to scrap the 0.5% stamp duty tax that Britons pay when they purchase UK shares, pointing out that no such tax exists when they buy foreign stocks. She also supports the idea of tax credits for Britons investing domestically. The UK had such a scheme until 2016, and its reinstatement could provide a meaningful incentive for retail investors to put their money into British companies.

The Confederation of British Industry, a prominent business lobbying group, has echoed these calls, urging urgent action to halt the exodus of firms from the London Stock Exchange. The CBI has said that lighter regulation, better marketing, and incentives for investors are needed to stem the outflow. The group's stance reflects a broader consensus among business leaders that the UK must act quickly to remain competitive.

The government, however, has declined to say whether stock market reform will be included in its Budget this month. A spokesman said: "As has always been the case, decisions on tax are a matter for the chancellor to set out at fiscal events, rather than routinely commenting on rumour, speculation or proposals." This cautious response suggests that any major changes to the tax treatment of UK investments may not be imminent.

The stakes are high. A continued exodus of companies from the London market could erode the UK's tax base, reduce the depth and liquidity of its capital markets, and diminish its influence in global finance. For a country that has long prided itself on being a hub for international business, the shift of listings to New York, Amsterdam, and Frankfurt represents a significant challenge. Dame Julia's intervention is a clear signal that the LSE believes urgent government action is necessary.

Whether the chancellor will heed these calls remains to be seen. But with the Budget approaching, the debate over how to keep British companies listed in London—and how to attract new ones—is likely to intensify. For now, Dame Julia's message is unambiguous: the UK must stop talking down its own market and start creating the conditions that will encourage investment at home.