The boss of the London Stock Exchange has heralded the biggest reforms to UK capital markets “in a generation”, as the Chancellor backed changes she believes are “reinvigorating” the City after early signs of a revival.
Rachel Reeves was due to appear at an event marking the recent success of London’s stock markets, but pulled out after renewed tariff threats from US President Donald Trump over Greenland.
Dame Julia Hoggett, chief executive of the LSE, said new rules for firms raising capital in the UK were resulting in the “greatest set of primary markets reforms in a generation”.
The measures, introduced by the Financial Conduct Authority, lower costs and speed things up for businesses looking to secure investment and raise capital in the UK.
Dame Julia said retail investors have been a “critical linchpin” of the stock exchange, but “over the last 20 years or so… we have seen retail investors have less and less access to our market, and become more and more disenfranchised”.
“That is why today is such for cause for celebration and deserves to be marked.”
Chancellor Rachel Reeves was expected to say that cutting red tape for firms listing their shares on the London stock markets is “reinvigorating” the City after early signs of a revival.
London Stock Exchange chief executive Dame Julia Hoggett said the new rules were a ’cause for celebration’ (Jonathan Brady/PA)
(Jonathan Brady)
Ms Reeves also set her hopes on the FTSE 100’s standout year encouraging more Britons to invest.
“Two years ago, some said the City’s best days were behind it. They were wrong,” Ms Reeves was due to say at the event in the City of London.
“As the FTSE 100 reaches record highs and global firms once again choose London, we are seeing the first signs of a new golden age for the City.
“By cutting paperwork and speeding up access to capital, these reforms back the entrepreneurs, innovators and investors who drive our economy, while preserving the high standards and investor protections that make the UK one of the most trusted markets in the world.”
She was expected to add that simpler and faster prospectuses and a more competitive listings regime are “reinvigorating that spirit” of openness in the London markets.
Under the new rules, companies that are already listed on London’s stock markets will not need to publish lengthy prospectuses in order to issue more shares and raise funds, in most cases.
The changes will also halve the time it takes between initial documents being published and an IPO (initial public offering) to list on the London Stock Exchange (LSE).
Furthermore, the LSE hailed the launch of its new “access bonds” initiative on the back of changes that make it easier for bonds to be issued in smaller values, therefore making them more accessible to a wider range of individual investors.
Dame Julia said that the bonds can be issued in denominations “even as low as one pound”.
“We want retail investors in the UK to feel that they have a personal stake in the success of British economy and British businesses, and there is no better time to encourage that,” she said.
The changes come after the LSE was bolstered by a late spurt in listing activity towards the end of 2025, including the flotations of Princes Group and Shawbrook Bank.
It sparked hopes of a rebound after a prolonged drought in activity and a flurry of UK-listed businesses abandoning London for international rivals.
Meanwhile, Ms Reeves is banking on the recent record performance of the FTSE 100 ushering in more retail investors.
The index, which tracks the performance of the UK’s biggest listed companies, surpassed the milestone 10,000 mark earlier this month for the first time in its history.
It follows a standout year in which the FTSE rose by 21.5%, the most since 2009.
The Government is working on reforms that will build a retail investment culture in the UK and remove barriers it says are unnecessary, with Britain trailing behind other countries such as the US.