Long Story Short: Why the LSE Needs a Fresh Kick‑Start
Former World Bank governor Yerbol Orynbayev says the London Stock Exchange (LSE) is dragging its feet, and it’s time the Shadow Chancellor Rachel Reeves finally rolls out some concrete tax perks to keep local businesses from heading across the pond.
The Core Problem
In the past decade the LSE’s listings have nosedived by 25%. Big names, from Arm to Shell, are ditching London for the New York Stock Exchange, while the UK’s own Financial Conduct Authority (FCA) is scrambling to loosen its rules—hoping a few extra IPOs will stir the pot.
At the same time, Jeremy Hunt has pushed the British ISA to woo ordinary investors and even eyed pension fund transparency.
Orynbayev’s Take
“It’s not about quick fixes,” Orynbayev says. “Deep‑rooted issues like Brexit and sluggish economic growth won’t be solved by a few new rules.” He argues that to revive the LSE, the focus must be on UK companies themselves.
He proposes:
- Tax breaks for pre‑IPO firms to keep them from looking abroad.
- Reintroducing the “domestic listing” culture that has been fading since the 1980s.
- Driving more London‑based capital to flirt with investment in the city.
Why the LSE Needs to Fight Undervaluation
Recent deals highlight the problem:
- Logistics firm Wincanton got a bid 104% above its old share price.
- Engineer TC Clarke was taken over for a staggering £90.6 million.
Both companies blamed the market for undervaluing them, signalling why firms are tempted to leave.
Global Trade & Investment: A Rough Spot
Since Brexit, the UK’s trade numbers slump:
- Exports to both the EU and non‑EU countries fell by £11.5 billion and £5.9 billion respectively.
- Foreign direct investment dipped to $14.1 billion—a fraction of pre‑pandemic averages.
All this points to the UK losing its appeal as a business hotspot.
What’s the Fix?
Orynbayev urges the UK to adopt a U.S.‑style regulatory playbook:
- Create a pro‑market environment that delights both tech giants and everyday firms.
- Rebalance labour rules to ease the skilled‑worker visa process.
- Answer to it all, remind ourselves that Rishi Sunak’s International Technology Strategy already sets a clear, ambitious path.
The Bottom Line
With the general election looming and companies already on the move, Rachel Reeves must get crafty. By unleashing tax incentives, trimming regulatory red tape, and tackling undervaluation, the LSE can reclaim its spot on the world stage.
