LSE Chief Urges UK to Back British Business as Firms Flee to New York

The head of the London Stock Exchange has called on the government to create stronger incentives for investing in UK-listed companies, warning that Britain risks losing more of its corporate champions to overseas markets unless it acts decisively.

Dame Julia Hoggett, who leads the LSE, told the BBC that ministers needed to make the UK stock market "more attractive" to investors. Without structural changes, she cautioned, large companies would keep looking abroad for their next phase of expansion.

Her intervention comes amid mounting concern over the steady drain of businesses from London's exchanges. In recent years, a significant number of prominent firms have either delisted, signalled their intention to move, or been acquired by foreign private buyers. That trend, critics argue, undermines the UK economy by squeezing tax receipts and depressing the valuations of companies that remain listed.

Speaking on the BBC's Big Boss podcast, Dame Julia framed the issue in straightforward terms. If the country genuinely wants British institutions to invest in British enterprise—a goal she said she has heard both the chancellor and the prime minister articulate—then the tax and regulatory system must be designed to encourage that behaviour. "We need to take the handbrake off," she said, suggesting that current policy actively works against domestic investment.

The scale of the London market is considerable. Its main exchange hosts roughly 930 companies with a combined market value of around £4.9 trillion. Close to 40% of those businesses are international, originating from more than 80 different countries. Yet the flow of companies departing has been relentless.

Among the most visible exits, takeaway chain Just Eat moved its listing to Amsterdam, travel operator Tui chose Frankfurt, and Flutter, the parent company of Paddy Power, now trades in New York. Each departure represents not just a lost listing but a potential blow to the ecosystem of investors, analysts, and service providers clustered around the LSE.

Meanwhile, the pipeline of new arrivals has slowed dramatically. Last year, London hosted just 23 initial public offerings, raising £2.1bn. By contrast, the far larger US market saw 354 IPOs, generating $44bn—roughly £33bn. The disparity highlights how far London has fallen behind in the global race for capital.

The problem is compounded by a surge in UK investment money flowing into American stocks as investors chase better returns. Dame Julia captured the irony sharply: while politicians talk about fostering growth in every British postcode, much of the capital meant to fuel that growth is being deployed to fund companies in every American zip code instead.

She stressed that the UK does not lack for promising businesses or for capital seeking a home. What is missing, in her view, is the confidence and the incentives to connect the two. Negative sentiment about the UK market—sentiment she believes is often overblown—has played a meaningful role in driving companies away. She urged the country to break what she described as a national habit of running itself down. "We need to stop throwing shade at ourselves as a nation," she said.

To reverse the tide, Dame Julia is advocating specific policy changes. She wants the government to abolish the 0.5% stamp duty that Britons pay when buying UK shares, noting that no equivalent tax applies when they purchase foreign stocks. The levy, she argues, puts domestic equities at a disadvantage and discourages the very investment the country needs. She also backs the reintroduction of tax credits for British residents who invest in UK-listed companies—a scheme that existed until 2016.

The Confederation of British Industry, a leading business lobbying group, has echoed these concerns, calling for urgent measures to halt the exodus. It has recommended lighter regulation, more effective marketing of the UK as a listing destination, and targeted incentives for investors. Without such steps, the CBI warns, the outflow of companies will continue and could accelerate.

The government has so far kept its cards close to its chest. Asked whether stock market reform would feature in the upcoming Budget, a spokesman declined to comment directly, saying only that tax decisions are a matter for the chancellor to announce at fiscal events—and that ministers would not respond to rumour or speculation in the meantime.

For Dame Julia, the stakes could hardly be higher. A vibrant, well-capitalised London market is not merely a matter of national pride; it is a critical component of the UK's ability to finance growth, support innovation, and retain the headquarters of companies that provide jobs and tax revenue across the country. If the current trajectory continues, she fears, the UK will keep exporting its most successful businesses—and the economic benefits they bring—to competitors overseas.