Financial services trade body TheCityUK has called on Chancellor Jeremy Hunt to remove stamp duty on trading in the forthcoming spring budget, in order to incentivise greater institutional and retail investment into UK equities.
In its submission to the spring budget, which will be unveiled by Hunt on 6 March, the body detailed a range of ideas it believes would help the UK economy to overcome its current challenges.
UK investors currently pay a tax on transactions when buying shares in companies incorporated in the UK.
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Among other proposals, TheCityUK raised the need for greater coordination at government level in ‘rolling out the red carpet’ for companies looking to list in the UK.
The firm suggested a single point of government engagement should be introduced for high-growth potential companies considering listing on UK exchanges, ensuring strategic and coordinated support across government and involving the FCA for a coordinated approach.
There has been widespread concern over the threat of UK-listed companies delisting from the London Stock Exchange for more favourable conditions elsewhere.
Companies such as Tui Group and CRH have moved their main listing away from London in recent times.
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TheCityUK has also called for a review of the “uncompetitive” overall effective tax rate on banks, while it is pushing for the phasing out of the bank levy which it believes will enhance the UK’s international competitiveness.
Meanwhile, the firm has argued for the creation of an Office for Investment ‘concierge service’ to help investors navigate the UK business environment and government departments, as recommended in Lord Harrington’s review on foreign direct investment.
Miles Celic, TheCityUK CEO, said: “Our industry plays a vital enabling role in driving economic growth right across the country.
“Backing Britain’s high-growth firms, rolling out the red carpet for companies seeking to invest and list in the UK, and easing the tax burden to boost institutional and retail investment in British equities will reinforce the UK’s position as a world-class international financial centre.”
