LSE Chief Urges UK to 'Take the Handbrake Off' and Back British Companies as Listings Exodus Accelerates

The head of the London Stock Exchange has issued a direct appeal to the government to do more to support British firms at a time when a growing number are choosing to list their shares in the United States rather than at home. Dame Julia Hoggett, who leads the LSE, told the BBC that ministers needed to make investing in the UK stock market "more attractive," warning that otherwise major companies would continue to look overseas to fund their next stage of growth.

Her intervention comes amid mounting concern about the health of London's equity market. Over the past few years, a string of well-known businesses have either left the London market, signalled their intention to move, or been acquired by private foreign investors. The worry among policymakers and business leaders is that this trend weakens the UK economy by reducing tax revenues and depressing the valuations of companies that remain listed.

Speaking on the BBC's Big Boss podcast, Dame Julia framed the issue in blunt terms. She argued that if the country genuinely wanted Britain to back Britain — a message she said she hears repeatedly from the chancellor and the prime minister — then the government must create structural incentives to make that happen. "We need to take the handbrake off," she said, suggesting that unnecessary friction and disincentives are holding back domestic investment in UK-listed companies.

The scale of the London market is substantial. The LSE's main market comprises roughly 930 companies with a combined market value of around £4.9 trillion. Almost 40% of those businesses are international, originating from more than 80 countries. Despite this, the past few years have seen a steady stream of departures. Takeaway chain Just Eat moved its listing to Amsterdam, travel giant Tui opted for Frankfurt, and Flutter, the owner of Paddy Power, now trades in New York.

At the same time, the pipeline of new companies choosing London for their stock market debut has thinned dramatically. Last year, there were just 23 initial public offerings on the London market, raising a total of £2.1bn. By contrast, the United States — which possesses far larger capital markets — hosted 354 IPOs, raising $44bn, equivalent to roughly £33bn. The disparity highlights the challenge London faces in competing for global capital.

Another symptom of the problem is the flow of UK investment money into US stocks as investors seek better returns. Dame Julia captured this irony with a sharp observation: "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." Her remark underscores the concern that British savers and institutions are increasingly choosing to deploy their capital abroad rather than in domestic equities.

She was quick to stress that the underlying problem is not a lack of quality companies or available capital. "There is no shortage of great companies and no shortage of capital," she said. Instead, she pointed to negative sentiment surrounding the UK market — sentiment she believes is often exaggerated — as a significant factor that has driven companies away in the past. "We need to stop throwing shade at ourselves as a nation," she added, describing the tendency as "a national habit."

To reverse the trend, Dame Julia is advocating concrete policy changes. She wants the government to abolish the 0.5% stamp duty tax that Britons pay when they purchase UK shares, noting that no equivalent tax exists when they buy foreign stocks. She also backs the idea of tax credits for Britons who invest domestically, pointing out that the UK operated such a scheme until 2016. These measures, she argues, would help level the playing field and encourage more domestic investment.

The Confederation of British Industry, a leading business lobbying group, has echoed these concerns, calling for urgent action to halt the exodus of firms from the London Stock Exchange. The CBI has said that lighter regulation, better marketing of the UK as a listing destination, and incentives for investors are all needed to stem the outflow. Its stance reflects a broader consensus among business groups that the status quo risks long-term damage to the UK's financial standing.

The government, however, has remained non-committal on whether stock market reform will feature in its Budget this month. A spokesman said that, 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. That response leaves open the question of whether the Treasury will act on the LSE chief's recommendations.

The timing of Dame Julia's intervention is significant. With the Budget approaching, she is effectively trying to force the issue onto the political agenda. Her argument is that the UK cannot afford to be passive while other financial centres, particularly New York, attract the listings and capital that London once claimed as its own. The loss of major companies is not merely a symbolic blow; it has real economic consequences, including reduced tax receipts and a diminished pool of investment opportunities for UK pension funds and savers.

Critics of the government's approach might argue that broader economic uncertainty, Brexit-related frictions, and a perception of sluggish growth have all contributed to the UK's diminished appeal as a listing venue. Dame Julia's focus on structural incentives and sentiment suggests she believes some of these factors can be addressed through deliberate policy choices rather than simply waiting for global conditions to improve.

Her call to "stop throwing shade" is also a cultural argument as much as an economic one. She appears to be suggesting that a pervasive pessimism about the UK's prospects has become self-reinforcing, discouraging both companies and investors. By changing the narrative and offering tangible rewards for domestic investment, she believes the tide could begin to turn.

Whether the chancellor heeds her advice remains to be seen. But the LSE chief's remarks have added urgency to a debate that is likely to intensify in the run-up to the Budget. For now, the message from the head of London's flagship exchange is clear: if the UK wants to keep its best companies, it needs to give them — and the investors who back them — a reason to stay.