The London stock market is in crisis. This isn’t a momentary wobble, it’s a slow bleed that risks turning terminal. Some of our most well-known publicly listed companies are ditching the UK in favour of the US - firms like Flutter, Arm and Wise - for better valuations, deeper capital pools and a more supportive investing culture. Meanwhile, the pipeline of new UK listings has stalled. In 2024, 88 firms left the market while just 18 joined.
We’re also seeing private equity snap up some of the UK’s most promising companies, businesses that might once have gone (or remained) public here but now see a London listing as plan B or even C. In recent months Alphawave, Peak AI - and, just this week, Spectris - have all been sold to foreign buyers. These are companies at the forefront of innovation, especially in fields like AI. They should be fuelling UK growth and boosting our public markets - not being sold off early for a fraction of their potential.
There are many reasons for this downward spiral, but one is clear: not enough people in the UK are investing. The default advice is still to hold cash.
In 2022-23, more than 700,000 additional people opened cash ISAs, while subscriptions to stocks and shares ISAs fell. This shift means less capital for British businesses, slower economic growth and fewer people building long-term wealth.
That’s why IG is today launching a national campaign - Save Our Stock Market (SOS) - to help turn the tide. Our four-point SOS ‘Survival Plan’ sets out a series of bold but practical reforms to revitalise the UK equity market while getting more people investing.
First, it’s time to move on from cash ISAs. These products have long been heralded as a sensible vehicle for building wealth, but they offer poor long-term returns and tax breaks many don’t need. Since 1999, cash ISA savers have earned just one-seventh the real returns of FTSE investors. By retiring the cash ISA and reallocating its tax benefits, we could channel billions into UK capital markets, supporting both personal wealth and national prosperity.
Second, we must scrap stamp duty on share purchases. The UK is the only major market to penalise investors in this way. It reduces liquidity, undermines competitiveness, and deters participation. Abolishing it would help make London a more dynamic and attractive place to invest.
Third, we propose a UK Equities Investment Scheme: 20% income tax relief for those who hold UK shares in an ISA for at least three years. We already reward angel investors - why not retail investors too? It’s simple, scalable, and could be funded by replacing the cash ISA.
Finally, we need to change the culture. The current regulation approach often errs too far on the side of caution, leaving firms hesitant to talk about the long-term benefits of investing. The result is a public discourse dominated by fear rather than opportunity. We need to reintroduce balance and confidence, empowering savers with the information to make informed choices.
We need radical reform to hold on to our best companies, encourage them to list in the UK, and drive national growth. That means reshaping the investment landscape so it rewards long-term backing of British businesses. It also means making it easier for more people to invest, helping them build wealth while fuelling the future of the UK economy.
We can’t afford to wait. Every year we delay, more capital flows abroad, more businesses leave, and the UK’s investing culture slips further behind. It’s time to act and to save our stock market before it’s too late.
Michael Healy is the UK Managing Director at IG.
