We recognise and support the Government’s commitment to stability, including its intention to limit major fiscal events to one per year.
Today’s reaffirmation by the Chancellor that predictability in tax and economic policy is a necessary foundation for long-term investment decisions is extremely welcome.
However, stability alone will not reverse the structural challenges facing the UK’s capital markets.
Small and mid-sized quoted companies continue to operate in an environment of reduced domestic equity allocations and rising regulatory and operational costs. While macroeconomic stability provides confidence, our sector requires further targeted action to restore competitiveness and stimulate investment.
In particular, we need meaningful progress on pension reform that translates into increased allocations to UK quoted equities, especially smaller companies. We need regulatory proportionality so that the costs of being public do not become a deterrent to growth. And we need sustained efforts to improve research coverage and market liquidity, both of which are essential to fair valuations and efficient price formation.
The UK’s public markets are a critical part of our growth ecosystem and a world-leading asset. Stability is welcome, but to unlock productivity, scale innovation and strengthen competitiveness, it must now be matched with decisive action to support growth companies.
