UK Stock Market's Global Share

In 2000, the UK stock market was the second largest globally, accounting for 10% of the total. Now it constitutes just 3%.

Absence of Growth Stocks

Technology accounts for just 1% of the All-Share index, with no new flotations or issuance from existing companies.

Takeover Surge

Six FTSE 100 firms disappeared through takeovers this year, including Schroders, Intertek, Beazley, DCC, easyJet, and Segro.

Global Market Comparison

North America raised $138 billion in the first half of 2026, including $86 billion from SpaceX, while the UK raised just £577 million.

Tax and Regulatory Shifts

Gordon Brown's first Budget removed dividend tax credits worth £5 billion annually, pushing companies into private equity or foreign ownership.

Pension Fund Impact

Pension regulators pushed funds to reduce equity exposure, with solvency rules after the 2008 crisis removing insurance firms from equity markets.

Capital Allocation Problem

Julia Hoggett, CEO of the London Stock Exchange, says the UK has a capital-allocation problem, not an innovation problem.

“we don't have an innovation problem, we have a capital-allocation problem”

Passive Funds Dominance

More than 50% of UK-listed company shares are owned by passive funds that take no interest in the companies.

Market Shrinkage

The Wilshire 5000 index in the US has shrunk to 3,500 companies from a peak of 7,500 in the late 1990s, mirroring the UK trend.

Recent Market Flows

Only one month of inflows into UK equity funds since July 2021, with outflows of £561 million in June, £1.6 billion in July, and £615 million in August.

Long-Term Challenges

Changing the UK's anti-equity investment culture requires a generation, with no quick fixes for market recovery.