Rachel Reeves is under fire for a tax that critics say harms UK investors and businesses alike
London: The new Lord Mayor, Alastair King, is not holding back. He’s criticizing Rachel Reeves for a tax on UK share investments. He believes it’s hurting British businesses and stifling growth.
The tax in question is a 0.5% stamp duty on share purchases. It’s expected to bring in £4.2 billion for the Treasury next year. But many think it’s unfair.
Investors in the UK face this tax, while those buying US shares don’t. Mr. King pointed this out, saying it puts UK investors at a disadvantage.
“You’re starting behind because your costs are higher,” he told The Telegraph. The City of London is already facing tough times, losing its share of global listings.
High-profile companies like Arm and Ashtead are moving their listings to the US. Mr. King is urging the Chancellor to either scrap or lower the stamp duty.
He believes even a small cut could make a big difference. For instance, removing the tax for smaller, riskier businesses could cost just £650 million.
“Markets have moved on, but our regulations haven’t,” he warned. He’s concerned about the London Stock Exchange losing its edge.
Mr. King also took aim at tax breaks for ISAs. He called them “bizarre” for allowing tax-free savings in cash or foreign shares, which he says helps American companies more than UK ones.
“Why give tax breaks for cash savings? It’s strange,” he said. “We should reward those willing to take risks with their money.”
While Reeves wants to reform regulations to boost growth, Mr. King believes we need to take bolder actions to bring back London’s global appeal.
“We need to promote London’s financial markets more actively,” he urged. It’s time to get back into sell mode.
