Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Penalise startups that list abroad after receiving state aid, urges UK Finance

by July 5, 2024
July 5, 2024
Penalise startups that list abroad after receiving state aid, urges UK Finance

The British banking sector has called for the next government to penalise startups that accept state aid and subsequently list abroad.

UK Finance, in a recent paper, suggested that subsidies and tax breaks should be reclaimed if companies do not demonstrate a “two-way commitment” to the UK.

UK Finance’s paper, co-authored with the consultancy Global Counsel, proposes that businesses receiving government support should be required to maintain their listing on UK stock exchanges or face repayment obligations. This recommendation comes amidst growing concerns over the number of startups choosing foreign exchanges over London.

For several years, British business leaders have voiced concerns about the decline of London’s stock market compared to other global exchanges, particularly in the US. The departures of major companies such as CRH, Flutter, and Ferguson have underscored these worries. Notably, the high-profile decision by Cambridge-based chip designer Arm to list in New York, despite lobbying efforts from Prime Minister Rishi Sunak, was a significant blow.

UK Finance suggests that linking government support to a commitment to remain in the UK could help curb this trend. The paper states, “The government should also consider ways in which an expanded set of taxpayer-funded supports for early-stage growth companies involve a two-way commitment and would become repayable in part or full if a recipient ultimately chooses to list, or move valuable operations, outside the UK.”

Various remedies have been proposed to address the perceived exodus of companies. Last year, the Financial Conduct Authority introduced extensive reforms to make it easier for startup founders to retain control, similar to practices in the US. Julia Hoggett, chief executive of the London Stock Exchange (LSE), highlighted that UK companies face a disadvantage as British asset managers often oppose larger, US-style remuneration packages.

Conor Lawlor, managing director for capital markets and wholesale policy at UK Finance, stated, “We want to see UK companies grow and be hugely successful. We also want to bolster our capital markets and the number of companies that choose to list on UK markets. Our aim is to make the UK as attractive a destination as possible.”

Additionally, UK Finance proposed tapering government support for startups rather than abruptly ending it when companies reach a certain size. They also suggested that making it easier for pension funds to invest in unlisted UK companies could provide significant benefits.

Data from the LSE shows a marked decline in the number of companies listed on London’s main market, from 2,101 in 2003 to 1,022 today, underscoring the urgency of addressing this issue.

Read more:
Penalise startups that list abroad after receiving state aid, urges UK Finance

0
FacebookTwitterGoogle +Pinterest
previous post
Live dealer car games: a new format of entertainment
next post
Bank of England poised for rate cuts as businesses plan to ease price hikes

You may also like

Why The Work Hard/Play Hard Mantra Is Damaging...

August 29, 2024

Understanding ESG Benchmarking: Why It Matters for Your...

November 21, 2024

The Power of Embedded Finance: Enhancing Traditional Financial...

March 16, 2023

Keir Starmer keeps quiet on Trump’s EU trade...

February 4, 2025

Mortgage reforms set to loosen for first-time buyers...

January 17, 2025

More than 1,000 UK employees trial four-day working...

November 4, 2024

Bailey urges Starmer to deepen EU ties to...

May 30, 2025

Vinted triples profits to £80m as second-hand fashion...

May 14, 2025

Fintech leaders call for stricter AI regulation at...

February 6, 2024

Unions calls for better protection for workers against...

July 20, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025
    • Tech ETFs are Leading Since April, but Another Group is Leading YTD

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,567)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved