Our stock market is in crisis - the time for working groups is over

The UK stock market is in serious trouble. What we are seeing is not a temporary dip but a steady and damaging decline. Some of the country’s most exciting companies are either choosing to list overseas or being snapped up by foreign private equity rather than floating in London.

In 2024 alone, 88 firms left the London Stock Exchange while only 18 joined. Arm chose New York, Flutter has made the US its primary listing, and Wise is preparing to follow. Meanwhile, IPOs have dried up and valuations remain depressed.

This isn’t just a reshuffling of listings - it’s a sell-off. The UK is trading the family silver for a pittance. Too often, our most promising businesses grow up here only to be sold or scaled abroad. London is no longer seen as the natural home for ambition. It has become plan B or even plan C.

We don’t just have a stock market problem, we have an investing problem too. Far too many people prioritise cash over investing, with the latter often painted as overly risky in the UK. In reality, you’re more likely to lose capital held in cash over the long term once inflation has taken effect.

In 2022–23, cash ISA subscriptions surged by more than 700,000 while stocks and shares ISAs declined. This means more people are getting paltry long-term returns on their capital and less capital is flowing into productive investments - and that matters. A weaker stock market leads to weaker pension returns, lower business investment, and less innovation. Over time, it means slower growth for the entire economy.

That’s why IG is launching Save Our Stock Market (SOS) - a campaign to revitalise the UK stock market and get more people investing. We are calling on policymakers to enact our four-point Survival Plan below.

1. End the cash ISA myth

Cash ISAs promise safety but deliver stagnation. For 26 years, they have encouraged millions to accept low returns in exchange for tax benefits many may not even need. Most people don’t pay tax on savings interest anyway. Since 1999, cash savers have seen just one-seventh of the real returns enjoyed by investors in the FTSE 100 - an index that itself has underperformed over this period. We’re calling for the government to end the opening of new cash ISAsand bring the cash allowance to zero from April 2026, redirecting tax relief towards long-term investments that build wealth and fuel growth.

2. Call time on Stamp Duty on shares

Stamp Duty is a tax on backing British business. No other major economy imposes it, and it’s harming our competitiveness. It reduces liquidity, distorts valuations, and makes UK equities less attractive at home and abroad. Research shows scrapping it could boost GDP by up to 0.8%, and even increase Treasury revenues. If growth is the goal, punishing investment makes no sense.

3. Reward those who back Britain

We already reward angel investors who support small businesses. It’s time to give ordinary savers a similar opportunity. We propose a UK Equities Investment Scheme (UEIS): a 20% income tax relief for retail investors who hold UK-listed shares in a stocks and shares ISA for at least three years. This simple, scalable measure would reward long-term investing in UK plc and could be funded by abolishing the cash ISA.

4. End the culture of fear around investing

Current regulation leans too far toward caution, reinforcing the idea that investing is risky, even irresponsible. Investors are bombarded with risk warnings everywhere, yet savers rarely hear about the real risk of holding capital in cash: that its value may well decline in real terms due to inflation. While consumer protection must remain a priority, inconsistent rules discourage firms from speaking openly about the benefits of investing. That limits public confidence and keeps capital locked away. We’re calling for clearer regulatory guidance that empowers firms to inform, support, and build a confident investing culture.

The time to act is now

The UK is running out of time. Every year we delay, more companies drift away, fewer people invest, and less capital flows to the firms that need it. We don’t need another consultation. We need action. We’re calling on the government to strengthen the market, push long-term savers towards better returns, and revive one of Britain’s greatest financial assets. This isn’t just about saving the stock market. It’s about restoring ambition to the UK economy and making investing part of everyday life.