Losing AstraZeneca would be more than a bitter pill for the City – it could be fatal
The government must urgently scrap stamp duty on shares and abolish new cash ISAs to prevent the London Stock Exchange losing its most valuable listing, Astrazeneca, says Michael Healy
The UK stock market just received its biggest wake-up call yet. Reports that Astrazeneca – the most valuable company on the London Stock Exchange – is considering a move to the US should shake everyone who cares about the UK’s capital markets to the core. If a business of this scale, reputation and strategic importance is starting to question its future here, the problem isn’t Astrazeneca. The problem is us.
This is no longer a case of a few tech firms chasing higher valuations overseas. It’s about whether the UK can still claim to be a world-class home for global business. If that’s in doubt, we are all in trouble.
In 2024, more than four times as many companies left the UK stock market as joined it. That’s not a blip – it’s a steady erosion. The UK market is thinning out faster than an Ozempic patient, and unless something changes, we’ll be left with a shell of what was once a global powerhouse.
The UK market is thinning out faster than an Ozempic patient, and unless something changes, we’ll be left with a shell of what was once a global powerhouse
High-profile names like Arm, Flutter, Ashtead and CRH have already voted with their feet. But Astrazeneca would be different. This isn’t just another loss – it would be a signal to the rest of the market that London is no longer the default choice for UK businesses.
Astrazeneca isn’t just a big name on the stock exchange. It’s a vital part of the UK’s life sciences ecosystem, a source of jobs, investment and global prestige. While I don’t believe that jobs are immediately at threat here, losing its listing would send shockwaves far beyond the City, damaging confidence in the UK’s ability to compete for world-class businesses and innovation.
For those who wonder why all this matters, a healthy UK stock market isn’t just about prestige or City bonuses. It’s a pillar of the UK economy which can help to drive growth and jobs. If we want to build and retain brilliant, globally competitive companies in the UK, we need a vibrant market they’re proud to list on – and a broad, engaged base of domestic investors with a UK-first mindset willing to back them.
Save our stock market!
Last week we launched IG’s ‘Save our Stock Market’ campaign because we couldn’t watch from the sidelines any longer. The decline doesn’t have to be terminal – but it’s certainly heading that way.
If we want to turn things around, there are some clear areas to address. To start with, we tax investors through stamp duty – a charge no other major market applies. We continue to incentivise low-yield Cash ISAs, even though UK investors have outperformed cash savers sevenfold since ISAs were introduced and these vehicles do nothing for our public markets. And we’ve created an overly cautious regulatory culture which has left financial services firms scared to talk positively about investing at all.
These are policy choices – and they’re pushing capital, talent and confidence away from the UK. That’s why we’re calling on the government to scrap stamp duty on UK shares, end new Cash ISA openings and redirect relief to equities, offer tax breaks for holding UK shares long term, and clarify regulations so we can promote investing responsibly but confidently.
These are not radical ideas. They’re practical steps to help restore the UK as a place where people want to invest, and where companies want to stay.
Losing Astrazeneca would be far more than a headline. It would be a turning point – and not the kind we can easily come back from.
The good news is there’s still time to fix this. But only if we act decisively now.
Michael Healy is UK Managing Director at IG Group