Our survival plan

The UK stock market isn’t just struggling; it’s in terminal decline. We’re witnessing a mass exodus. Major firms like CRH, Arm, Flutter, and now Wise have turned their backs on the London stock market. IPOs have collapsed. New listings have slowed to a trickle.

This problem won’t solve itself. And if we don’t act now, the damage could be permanent. We need more than tweaks. We need bold, sweeping reform to stop the rot and breathe life back into our markets. We’re calling on policymakers to step up with serious action. Our survival plan sets out four clear steps to help UK companies grow, boost public wealth, and put investing at the heart of everyday life. This isn’t just about saving the stock market. It’s about securing our economic future. It’s time to get serious.

1. End the cash ISA myth

For 26 years, cash ISAs have encouraged people to settle for rock-bottom returns instead of building real, long-term wealth through investing. This so-called ‘safe option’ has quietly drained opportunity from a generation, while doing little for the economy. IG analysis shows that since cash ISAs were introduced in 1999, savers have seen just one-seventh the real returns of investors. Yet in 2022–23, Cash ISA subscriptions jumped by 722,000, while stocks and shares ISAs fell by 126,000.

This generous tax break costs the government £9.4bn a year1 - yet delivers almost no return. Most people wouldn’t pay tax on their savings anyway, thanks to the Personal Savings Allowance. At current rates, you’d need £25,000 saved to hit the limit as a basic-rate taxpayer – and most cash ISAs don’t even pay enough interest to get close.

If just 20% of 2022–23 cash ISA inflows had gone into stocks and shares ISAs, with half directed toward UK equities, that could have delivered a £4bn boost to UK-listed firms and saved the Treasury £2bn annually.

It’s time for a bold step: from April 2026, we propose ending the option to open new Cash ISAs and bringing the cash allowance to zero.

2. Call time on Stamp Duty

Stamp Duty on shares is a self-inflicted wound, pushing down valuations, handing an advantage to overseas markets, and undermining the growth we want.

This outdated tax raises around £4bn a year, but it comes at a huge cost. It drags down UK share prices, distorts capital markets, and makes our stock exchange less competitive.

Research from the Centre for Policy Studies and Oxera suggests that scrapping Stamp Duty could grow the economy by 0.2% to 0.8% and might even boost public revenues by up to £2.8bn.

Politicians talk a big game on growth. Time to prove it. Scrap Stamp Duty on shares and stop punishing investment.

3. Reward those who back Britain

Retail investors are losing interest in UK equities and who can blame them? Right now, the ISA system offers little incentive to back British businesses, while wealthier investors enjoy generous schemes like the Enterprise Investment Scheme (EIS).

EIS works. It offers 30% income tax relief plus tax-free gains and it’s proven to attract capital. So why not give ordinary investors a version too?

We’re calling for a UK Equities Investment Scheme (UEIS): a bold, EIS-style incentive that gives income tax relief to retail investors who hold UK-listed shares in a stocks and shares ISA for at least three years.

At a 20% relief rate, someone maxing out their ISA allowance could knock £4,000 off their income tax bill, all while building wealth and supporting the economy.

If all new stocks and shares ISA contributions went into UK equities (up from around 50% now), this could inject £12.5bn into the stock market each year for a £2.5bn cost to the Treasury. That’s a powerful return on investment.

Backing British businesses shouldn’t come at a cost. It should come with a reward.

4. End the culture of fear around investing

Right now, UK investing is shaped more by caution than ambition. Financial promotion rules are designed to protect consumers but can have unintended consequences: discouraging people from investing, limiting innovation, and reducing confidence in public markets.

Under the FCA’s Consumer Duty, promotions must be “fair, clear and not misleading”. However, in practice, these rules are often applied inconsistently leading to firms, especially smaller or newer ones, shying away from explaining the benefits of investing at all.

The result? A regulatory approach that keeps people in savings accounts, and capital out of British businesses.

We’re calling on the FCA to help flip this mindset. That means:

• Clearer, more confident guidance on how firms can promote investing responsibly

• A move away from the overprotective stance that underestimates people’s ability to make informed decisions

• More open support for innovators helping to widen access and build investing confidence

It’s time to end the fear and start building a culture of confident investors.