Rachel Reeves will announce a three-year stamp duty holiday for newly listed companies in her Budget, in a bid to reignite London’s struggling stock market and lure more firms to float in the UK.
Under the proposed plan, investors will no longer pay stamp duty on shares bought in newly listed companies, removing the current 0.5pc tax on transactions and making London a more attractive venue for initial public offerings.
According to Bloomberg, the Chancellor will position the move as a key measure to reverse the steady decline in UK IPO activity. Britain, once a top-five global destination for stock market listings, has now slipped out of the top 20, highlighting growing concerns over the City’s competitiveness.
So far this year, just £184m has been raised through IPOs on the London Stock Exchange in the first nine months — a stark contrast to historic norms and rival financial centres.
Ms Reeves created a specialist task force in July to find ways to stem the exodus of companies choosing to list overseas, and the stamp duty holiday is expected to form a central pillar of that strategy.
The announcement signals a clear attempt to revitalise London’s equity markets and restore its status as a global hub for public listings.
