“Save our stock market” - IG launches campaign to halt UK stock market’s downward spiral and get savers a better deal

Thursday 26th June, London - UK-based investing and trading platform IG is today launching its "Save our stock market" (SOS) campaign as an urgent rallying cry to policymakers - to reverse the alarming decline of the UK’s equity market, and ignite a culture of investing across the country.

For too long, the UK has prioritised a savings-first mindset while discouraging ordinary people from investing in the stock markets. IG analysis shows that UK cash savers have seen around one seventh of the real returns (after accounting for inflation) of UK investors since cash ISAs were first established by the government in 1999. Despite this, cash ISA subscriptions are rising while stocks and shares ISAs are falling.

The campaign comes at a critical moment for UK equity markets. In 2024, 88 companies left the UK stock market and just 18 joined. High-profile companies such as Arm Holdings have chosen overseas listings for better valuations, while firms such as Wise, Flutter Entertainment and Ashtead Group have chosen to move their listings to the US.

IG is proposing a four-point policy framework to help resuscitate the UK stock market while also benefiting the public by getting more people investing. These four policy asks are:

1. End the Cash ISA myth: Redirect billions in tax relief from low-yield cash savings into more productive equity investments by ending cash ISA openings and bringing the cash allowance to zero from April. For millions of people, Cash ISAs are hindering rather than helping them to build wealth.

2. Call time on Stamp Duty: Stamp Duty on shares is a self-inflicted wound. No other major economy taxes equity investment like this. Remove this outdated tax that unfairly penalises UK investors.

3. Reward investors for backing the UK: Encourage retail investment in UK companies by providing 20% income tax relief on UK shares held in ISAs for at least three years, modelled on the successful Enterprise Investment Scheme.

4. End the culture of fear when it comes to investing: Step back from an overly cautious regulatory approach that reinforces fear of investing. Central to this, clarify the difference between advice and guidance so that financial services providers can promote long-term investing benefits without regulatory uncertainty.

To show its commitment to backing the UK stock market, from Thursday 26th June - Friday August 15th, IG is offering all new share dealing customers a welcome bundle of UK shares worth up to £100. This will appear in their account in September, provided they meet the offer’s criteria. The stocks will be randomly allocated, with customers able to receive shares in some of the UK’s most well known public companies from M&S to Rolls Royce.

Michael Healy, UK Managing Director at IG said: "We’re watching a crisis unfold and we need bold action. Our stock market - once the envy of the world - is in a downward spiral. At the same time, the UK is stuck in a damaging savings-first mindset, with far too few people investing to build wealth for the long term.

"With our SOS campaign, we're calling on the government to deliver the urgent policy changes our stock market needs, from scrapping Stamp Duty on UK shares to encouraging a shift away from stagnant cash savings, and using incentives rather than penalties to get people backing British firms. And to show we’re putting our money where our mouth is, we’ll be offering every new customer who joins IG in July and August a free UK share.

“For too long, policymakers have been paralysed by the desire to keep everyone happy. But the time for working groups is over - this is about getting more Brits investing, while saving a strategic national asset before it's too late.”

You can read more about IG’s SOS campaign and free UK share offer here.