No Result
View All Result
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions
Smart Investment Today
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock
No Result
View All Result
Smart Investment Today
No Result
View All Result
Home Investing

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

by
July 5, 2024
in Investing
0
Penalise startups that list abroad after receiving state aid, urges UK Finance
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

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

Previous Post

Bank of England poised for rate cuts as businesses plan to ease price hikes

Next Post

Argument by Fiat

Next Post

Argument by Fiat

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


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

    • Trending
    • Comments
    • Latest

    Gold Prices Rise as the Dollar Slowly Dies

    May 25, 2024

    Richard Murphy, The Bank of England, And MMT Confusion

    March 15, 2025

    We Can’t Fix International Organizations like the WTO. Abolish Them.

    March 15, 2025

    Free Markets Promote Peaceful Cooperation and Racial Harmony

    March 15, 2025

    Leading with Heart: Nicky Wallis’s Remarkable Rise from Adversity to Boardroom Influence

    0

    Ana-Maria Coaching Marks Milestone with New Book Release

    0

    The Consequences of California’s New Minimum Wage Law

    0

    Memorial Day

    0

    Leading with Heart: Nicky Wallis’s Remarkable Rise from Adversity to Boardroom Influence

    May 9, 2025

    Anastasia Dubinina Transforms Literary Talk at Royal Festival Hall into Immersive World-Building Experience

    May 9, 2025

    Revolution in Coffee Brewing: Bluewater Showcases Café Station at London Coffee Festival

    May 9, 2025
    Los Angeles Corruption

    Los Angeles Corruption

    May 8, 2025

    Recent News

    Leading with Heart: Nicky Wallis’s Remarkable Rise from Adversity to Boardroom Influence

    May 9, 2025

    Anastasia Dubinina Transforms Literary Talk at Royal Festival Hall into Immersive World-Building Experience

    May 9, 2025

    Revolution in Coffee Brewing: Bluewater Showcases Café Station at London Coffee Festival

    May 9, 2025
    Los Angeles Corruption

    Los Angeles Corruption

    May 8, 2025
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 smartinvestmenttoday.com | All Rights Reserved

    No Result
    View All Result
    • News
    • Economy
    • Editor’s Pick
    • Investing
    • Stock

    Copyright © 2025 smartinvestmenttoday.com | All Rights Reserved