Despite the startling announcement from the LSE at the end of June saying that up to 20 companies from the FTSE 100 could potentially follow AstraZeneca’s example and list in the US – in its worst case scenario, the prevailing view of the London market remains one of resilience.
Recent positive news is that Utmost is planning to float in London this autumn, Waterstones Barnes & Noble is also considering a flotation this year, quite possibly in London; TDR Capital is also reportedly considering a London listing for David Lloyd gyms, and billionaire, Michael Bloomberg, announced over £400 million of funding for UK climate ventures and initiatives at London Climate Action Week.
Yes, a number of London listed companies have chosen to list in the US and there have been a couple of take-private deals that have whittled-down the number of listed companies, but the steady drip of positive economic news: inflation is down, interest rates are down, unemployment is steady, GDP is up etc, appears to be fuelling a low-key optimistic outlook about the UK economy and the London markets overall.
Attendees at The Times CEO Summit in June echoed this mood. The Times reported that chief executives recognized the resilience of the economy in the face of recent geopolitical uncertainty and agreed that there were reasons to be optimistic about growth. However, they also called for ideas to promote growth to be implemented rather than being endlessly discussed. Action not words.
But what action?
PKF conducted a straw poll of clients and contacts earlier this year. The firm asked what changes would have the biggest impact on entrepreneurs, help to reinvigorate the market and support investor behaviour.
By far the most popular measure with 60 per cent of the vote was an end to stamp duty on share trades, followed by forcing pensions companies to invest in UK stocks which was supported by 30 per cent of respondents. This last measure has also been championed by the chief executive of Octopus Energy Group who has called on the government to urgently enable pension funds to invest in UK technology companies. Finally, communications campaigns to encourage greater retail investment in the markets received 10 per cent of the vote.
These are concrete initiatives that would not only move the dial on growth but inspire the industry’s confidence.
In an interview on Sky News’ Mornings with Ridge & Frost programme in June, Lord Browne, the former CEO of BP, was also generally positive. He commented that rather than focusing on the ups and downs of the market, what British businesses really need to succeed is to have a good strategy, a strong management team and a stable government. Two out of three ain’t bad (according to Meat Loaf). Arguably, a company with a clear direction and a high-performing, effective leadership team can deliver success even if the political ground is shifting.
The stability on which the London market’s resilience has been based is beginning to show signs of strain. Over the next few weeks, we will discover whether the UK’s new Prime Minister, Andy Burnham and his new cabinet ministers have succeeded to their new roles in a relatively smooth transition, or whether the personnel changes at the top of Government have unsettled the markets.
In his first speech as Prime Minister, Andy Burnham announced he would publish a ‘Ten Year Plan’ later this year that would deliver a ‘new economic model’ and ‘build a new economy’; including re-industrialisation. Crucially, at the same time, he pledged stability and that he would stick to the fiscal rules. His appointment of John Healey as Chancellor of the Exchequer appears to support that intention. It is to be hoped that the new Prime Minister listens to the concerns of the business community and opens his ears to the many suggested actions from various industry experts on how to drive growth and deliver on the positivity that he has promised. The early indications are that Andy Burnham is speaking to the right people. For example, there are reports that one of his advisors, Andy Haldane, the president of the British Chambers of Commerce, has suggested there should be a “home bias” when it comes to pension tax relief which would only be offered to those that are prepared to invest in the UK. Driving capital into the domestic market is undoubtedly key to getting a strong pipeline of London IPOs moving again and such a measure would be welcome.
This article was originally published in the July 2026 AIM Advisers Rankings Guide. For more information, please contact Joseph Archer.
