Tue, 08 Jul 2025

Tue, 08 Jul 2025 Action needed to halt exodus of firms leaving UK, says CBI

The boss of the CBI says he would support cutting the allowance on cash ISAs to encourage more people to invest in shares.

* The UK's financial services sector faces a "pivotal moment" due to the exodus of 213 firms from the London Stock Exchange since 2016.
* The CBI has warned that urgent action is needed to stem the outflow, which includes companies listing elsewhere, private firms buying up public ones, and investors shunning UK shares.
* The CBI's chair, Rupert Soames, has called for lighter regulation, better marketing, and incentives for investors to put cash into British firms.
* He supports cutting allowances for cash ISAs to encourage more investment in stocks and shares, which is also being considered by Chancellor Rachel Reeves.
* Mr Soames argued that the current £20,000 annual allowance for tax-free cash ISAs does little to help growth.
* He said: "Of all the investments that God ever invented, cash ISA is the worst possible one."
* The UK's stock market has lost several well-known companies, including ARM Holdings, which is now listed in New York, and BHP, which moved to Australia.
* Last year saw 88 companies leave the UK, and 70 more have departed so far this year, with a total of 213 firms having left since 2016.
* The CBI's report welcomed some of the work done already to bolster UK stock markets but said there is still much to be done to attract more investment.
* A Treasury spokesperson said that the Chancellor would set out more detail on how to "ruthlessly exploit our global advantages" and ensure capital markets are competitive.
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