Some of the UK’s most influential corporate leaders have joined the CBI in calling for the removal of stamp duty on share purchases and greater flexibility on executive pay, as part of a sweeping set of proposals to revitalise London’s equity markets.
In a new report issued ahead of next week’s Mansion House speech by Chancellor Rachel Reeves, the Confederation of British Industry warned that the UK is at a critical crossroads, with its capital markets facing an “existential challenge” amid rising competition from the US and a decline in public listings.
The proposals have been developed in consultation with more than 30 FTSE 100 leaders and investors, including executives from Anglo American, Shell, HSBC and AstraZeneca. They argue that the time has come for “bold action” to restore London’s position as a leading global financial hub.
Key among the measures is the call to scrap or reform the 0.5% stamp duty levied on share transactions, which the report claims “disproportionately penalises” retail investors and discourages broader participation in UK equities. The CBI suggests alternative tax collection methods could be explored to maintain revenue while reducing the burden on investors.
The report also pushes for reforms to annual reporting requirements, more incentives for overseas companies—particularly from Asia—to list in London, and renewed efforts to build an “equity investment culture” among British retail investors.
Rupert Soames, CBI president and chairman of medical firm Smith & Nephew, said: “This is a moment of huge change. We face an existential challenge to the UK’s public markets, and we must ensure we are not sleepwalking into long-term decline.”
Soames acknowledged that the Treasury might be reluctant to forgo stamp duty revenues but argued that a more equitable system could still deliver similar returns without deterring participation.
The CBI is also urging the government to review UK remuneration rules to allow companies to compete globally for executive and non-executive talent. This follows a series of high-profile boardroom pay rows and a growing number of London-listed firms adapting US-style incentive schemes to attract international leaders.
The London Stock Exchange’s chief executive, Dame Julia Hoggett, welcomed the report, calling it a “timely and vital contribution” to the debate on the future of UK capital markets.
She added that while the government has taken steps to modernise the regulatory framework, “we have still not seen the turning point in terms of flows of risk capital into the UK”.
The appeal follows recent announcements that UK firms including CRH, Flutter, and Arm Holdings have either shifted their listings to New York or opted to list there, citing deeper capital markets and higher valuations.
The EY IPO Eye report released this week shows that just nine companies listed in London in the first half of 2025, raising £183 million—a 64% drop year-on-year. Analysts believe activity may pick up in late 2025 or early 2026, but sentiment remains fragile.
With public listings declining and private capital on the rise, the CBI warns that without decisive reform, the UK risks falling further behind in the global race for investment.
