Leading business and financial figures are calling on the chancellor to speed up city reforms
Leading business and financial figures have called on the chancellor to speed up the city’s reform and stop kicking change into the long grass.
Jeremy Hunt yesterday promised to strengthen the stock market by releasing money into retirement plans, adding that he would reveal more in the fall statement.
He said the collapse of Silicon Valley Bank and HSBC’s bailout of its UK arm were proof “that we need to build a larger, more diverse financing system, where the benefits of investing in high-growth companies are available to more investors.”
Urgency: Julia Hoggett, head of the London Stock Exchange (pictured), welcomed Hunt’s pledge to strengthen the stock market but urged him to pick up the pace
He added, “I’ll be back in the fall statement with a plan to deliver that. It includes measures to unlock productive investment from defined contribution pension funds and other sources, make the London Stock Exchange more attractive for listing and complete our response to the challenges posed by the US Inflation Reduction Act.”
But leading City figures warned ‘it was too little too late’ and asked why Hunt waited until the autumn to make changes.
The urgency comes as the UK loses key businesses to the US. Two weeks ago, British microchip designer Arm said it will only float on Wall Street, raising hopes of a dual listing in London, while £30bn building materials giant CRH plans to take its shares to the US.
The moves were described as a ‘kick in the teeth’ amid rising fears of a mass exodus.
London Stock Exchange chief executive Julia Hoggett welcomed Hunt’s comments but urged him to step up the pace of reform.
Statistics show that in 2000 39 per cent of all shares quoted on the London Stock Exchange were held by UK pension schemes and insurers, but by 2020 this had fallen to 4 per cent.
Instead, much of the money has shifted to bonds and real estate.
Hoggett (pictured) said: “Pace is needed, including with regard to listing rules and other expectations placed on listed companies. We need to free up the venture capital available in the £4.6 trillion of funds managed by UK pension and insurance schemes to put that hard-earned money back to work as it was always meant to be, as an investment for growth.”
The Tories have already launched two major studies into how to bolster investment in British companies.
Former WorldPay boss Sir Ron Kalifa was accused in July 2020 of seeking ways to boost the fintech sector across Britain.
While Lord Hill, the former European Commissioner for Financial Services, was tasked in November of that year to find out what could be done to make London more attractive for companies to list their shares.
According to sources, reforms were postponed after Kwasi Kwarteng’s disastrous mini-budget in September.