The London Exodus
Real talk: the London Stock Exchange (LSE) is losing its main character energy. Dame Julia Hoggett, the boss of the LSE, says the UK is facing a major problem as big firms pack up and head to the US for their next stage of growth. Companies like Just Eat, Tui, and Flutter have already made the jump to exchanges in Amsterdam, Frankfurt, or New York, leaving a serious void back home.
Following the Money
The numbers show why the vibes are off. Last year, the LSE saw only 23 initial public offerings (IPOs), raising about £2.1bn. Meanwhile, the US market absolutely ate, hosting 354 IPOs that brought in $44bn (£33bn). It’s not that the UK is lacking capital or good companies, but the sentiment is lowkey toxic. Hoggett argues we’ve developed a national habit of “throwing shade” at our own market, which pushes investors to fund growth in “every zip code” across the pond rather than supporting businesses at home.
The Fix
To keep companies from dipping, Hoggett is pushing the government to create structural incentives. Her wishlist? First, scrap the 0.5% tax Brits pay when buying UK shares—a fee that doesn’t exist for foreign stocks. Second, bring back tax credits for domestic investments, which haven't been around since 2016. The Confederation of British Industry agrees, calling for lighter regulation and better marketing to stop the outflow.
Why it matters
When companies list their shares overseas, the UK economy takes an L. It means less tax revenue and lower business valuations. If the government doesn’t step up with tax reform in this month’s Budget, the exodus of big players could continue to wreck the UK’s financial competitiveness.
