Business and finance figures call on Chancellor to speed up city reforms
Figures from business and finance have called on the Chancellor to speed up reform in the city and stop forcing changes on the long grass.
Jeremy Hunt yesterday pledged to support the stock market by releasing cash into pension plans, adding that he would disclose more in the fall statement.
He said the collapse of Silicon Valley Bank and the bailout of its UK branch by HSBC was proof “we need to build a wider and more diverse financing system, where the benefits of investing in high-value companies growth are accessible to more investors”.
Urgency: London Stock Exchange chief executive Julia Hoggett (pictured) welcomed Hunt’s commitment to strengthening the stock market but urged him to pick up the pace
He added: “I will come back in the fall statement with a plan to achieve this.” It will include measures to unlock productive investment from defined contribution pension funds and other sources, make the London Stock Exchange a more attractive place to list, and complement our response to the challenges created by the US Curtailment Act. ‘inflation.
But prominent figures in the city warned “it was too little too late”, questioning why Hunt was waiting until the fall to implement changes.
The emergency comes as the UK loses major businesses to the US. Two weeks ago, British microchip designer Arm said it would only float on Wall Street, dashing hopes of a dual listing in London, while building materials giant CRH, worth £30 billion pounds, plans to list its shares in the United States.
The moves were described as a ‘kick in the teeth’ amid growing fears there could be a mass exodus.
Julia Hoggett, chief executive of the London Stock Exchange, welcomed Hunt’s comments but urged him to step up the pace of reform.
Statistics show that in 2000, 39% of all shares listed on the London Stock Exchange were held by UK pension schemes and insurers, but by 2020 that percentage had fallen to 4%.
Instead, much of the money was transferred to bonds and property.
Hoggett (pictured) said: “A pace is needed, including for listing rules and other expectations placed on listed companies. We need to unlock the risk capital available in the £4.6trillion of funds under management by UK pension and insurance schemes, to put that hard-earned money back to work as it was always intended, as an investment for growth.
The Tories have already launched two major reviews on how to boost investment in UK businesses.
Former WorldPay boss Sir Ron Kalifa was tasked in July 2020 with researching ways to foster the fintech sector across Britain.
While in November that year, Lord Hill, the former EU financial services commissioner, was tasked with finding out what could be done to make London a more attractive place for companies to list their shares.
Reforms were delayed after the disastrous Kwasi Kwarteng mini-budget in September, sources say.
