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

The head of the London Stock Exchange has issued a blunt warning to the UK government: Britain must do far more to support its own companies 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 need to make investing in the UK stock market significantly more attractive, or else major firms will keep looking abroad for their next phase of growth.

Her intervention comes amid mounting concern about the health of London's equity market. Over the past few years, a wave of prominent companies has either left the London market, signalled an intention to move, or been acquired by foreign private investors. That trend has raised fears about the long-term strength of the UK economy, with analysts warning it could erode tax revenues and depress business valuations across the board.

Speaking on the BBC's Big Boss podcast, Dame Julia argued that the government's stated ambition to "back Britain" needs to be matched by concrete policy action. She called for structural incentives to encourage investment in UK-listed companies, saying the country needs to "take the handbrake off" if it wants to compete on a global stage. Without those changes, she suggested, the drift of capital and companies overseas will only continue.

The scale of the challenge is considerable. The LSE's main market currently comprises around 930 companies with a combined value of approximately £4.9 trillion. Nearly 40% of those businesses are international, drawn from more than 80 countries around the world. Yet in recent years, that international character has been tested by high-profile departures. Takeaway chain Just Eat moved its listing to Amsterdam, travel giant Tui opted for Frankfurt, and Paddy Power owner Flutter 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, just 23 initial public offerings took place on the London market, raising £2.1 billion in total. By contrast, the United States — which has far larger capital markets — hosted 354 IPOs, generating $44 billion, equivalent to around £33 billion. The disparity underscores how far London has fallen behind New York in the race for new listings.

The exodus has been accompanied by a surge in UK investment money flowing into American stocks as investors hunt for better returns. Dame Julia framed the issue in stark terms, noting that while politicians talk about spreading growth to every corner of the country, much of the capital meant to fund that growth is being deployed elsewhere. "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 said.

She was quick to reject the idea that Britain lacks the raw ingredients for success. There is, she insisted, "no shortage of great companies and no shortage of capital" within the UK. The real problem, in her view, is one of sentiment and structure rather than substance. Negative perceptions of the UK market — which she described as often exaggerated — have played a significant role in pushing companies to look elsewhere over the years.

Dame Julia also took aim at a deeply ingrained national habit of self-criticism. "We need to stop throwing shade at ourselves as a nation," she said, describing the tendency as a "national habit" that undermines the country's economic standing. Her comments echo a growing frustration among business leaders who argue that excessive pessimism about the UK is itself a barrier to investment and growth.

Beyond changing the narrative, she is pushing for tangible reforms. One of her key proposals is the abolition of the 0.5% stamp duty tax that Britons pay when purchasing UK shares. She pointed out that no such tax applies when investors buy foreign stocks — a discrepancy she believes unfairly penalises domestic investment. Scrapping the levy, she argues, would remove a clear disincentive for putting money into British companies.

She also backs the reintroduction of tax credits for Britons who invest domestically, a scheme the UK operated until 2016. Such incentives, she contends, would help redirect capital back into UK-listed firms and create a more supportive environment for companies considering where to base their operations. The combination of lower transaction taxes and targeted reliefs, she suggests, could help reverse the current trajectory.

Her concerns are shared by the Confederation of British Industry, the country's leading business lobbying group. The CBI has called for urgent government action to halt the flow of companies away from the London Stock Exchange. It has identified three priorities: lighter regulation, more effective marketing of the UK as a listing destination, and better incentives for investors. Without such measures, the group warns, the outflow is likely to persist.

The government, however, has remained non-committal on whether stock market reform will feature in the Budget later this month. A spokesman said that, as has always been the case, tax decisions are a matter for the chancellor to announce at fiscal events rather than to comment on routinely amid rumour and speculation. That response leaves open the question of whether ministers will heed the mounting calls from business leaders.

The debate over the LSE's future carries significant economic stakes. A weakened stock market can reduce the pool of capital available to growing companies, limit the returns of pension funds and ordinary savers, and diminish London's status as a global financial hub. For a country already grappling with sluggish productivity and weak investment, the decline of its flagship exchange represents more than a symbolic loss.

Dame Julia's message ultimately amounts to a challenge to policymakers: if the UK genuinely wants to back British business, it must create the conditions that make doing so worthwhile. That means rethinking taxes, regulation and incentives — and, just as importantly, changing the national conversation from one of decline to one of opportunity. Whether the government will respond with the bold measures she seeks remains to be seen.