Chancellor Hunt Weighs Stamp Duty Breaks to Revive London's Equities Hub Status
Concerns have been raised about London's position as a global equities hub, with an exodus of UK-listed companies to New York and a scarcity of new listings. The Chancellor, Jeremy Hunt, is contemplating measures to revive the UK stock market today, including a stamp duty break for newly floated firms.
London's ranking in global IPO fundraising has plummeted this year, falling below Mexico and Singapore. This decline has sparked fears that the city is losing its appeal as a premier listing destination. AstraZeneca's decision to list its shares directly on Wall Street has further fuelled these concerns, with some speculating that it signals a permanent shift to the US stock market.
To tackle this issue, Hunt is considering exempting investors from stamp duty on shares in newly listed firms for two to three years. This move aims to attract more investors and encourage more companies to choose London for their listings. Additionally, some have suggested removing stamp duty on UK stocks entirely to boost the stock market's competitiveness.
Meanwhile, the UK stock market awaits several upcoming IPOs. Challenger bank Shawbrook is expected to announce its IPO in the coming days, while Beauty Tech is set to debut with a valuation of about £300 million. US data centre group Fermi has also made its debut on the London Stock Exchange as part of a dual listing with New York's Nasdaq.
The UK government is exploring ways to revitalise the London stock market today, with the Chancellor considering stamp duty breaks for newly listed firms. Upcoming IPOs, such as those from Shawbrook and Beauty Tech, offer hope for a resurgence in listings. However, the long-term impact of these measures and the city's ability to compete with other global financial centres remain to be seen.
