Stock market boss calms fears as UK firms depart

Wednesday 22nd May 2024 06:56 EDT

The chief executive of the London Stock Exchange refuted claims of a crisis, despite the departure of firms worth hundreds of billions of pounds for the US. 

Julia Hoggett emphasised that there's "no sense of panic," asserting that the UK is already excelling. 

A Treasury spokesperson echoed this sentiment, stating that the UK remains one of the best places globally for growth and investment. Efforts are underway to enhance UK competitiveness further. Chancellor Jeremy Hunt will convene a summit of finance chiefs to explore strategies for bolstering the appeal of UK markets to both domestic and international companies.

Having large companies' shares listed in the UK is crucial because it attracts other industries like insurance, accounting, law, and pensions. 

Financial services, comprising 10% of the UK economy, generates £90 billion annually in tax revenue - equivalent to half of the NHS budget. However, an increasing number of companies are delisting from the London Stock Exchange.

ARM Holdings, based in Cambridge, now trades shares in New York. Flutter, owner of Paddy Power, will move there soon. Indivior saw shares surge after considering relocation. Even Shell, UK's largest company, warns of potential relocation.

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