London's position as a leading international finance center is under threat, with fears that the city is losing out to New York and other European cities. London has

witnessed a decline of 40% in publicly listed companies since 2008 and has struggled to keep pace with rival markets in Amsterdam, Paris, and Frankfurt. The European Union and the United States are also revamping their capital markets to stay competitive. To revive its fortunes, the UK government published over 30 proposed changes to existing rules under the Edinburgh Reforms agenda. However, industry groups and finance executives are lobbying for more policy changes to attract more multinationals to list in Britain.

Some of the proposals include financial sweeteners, tax breaks on investment returns and dividend income, and more affordable access to investment research to encourage investors to back UK-listed companies. The finance sector is working to address under-allocation towards equities among retail and institutional investors, with London's stock market commanding a small fraction of the level of 'mom and pop' investment seen in the United States or Hong Kong. Finance bosses expect the government to propose reforms to unlock pensions investment in the coming months. However, some pension fund bosses have expressed concerns about any attempt to compel them to invest in riskier fledgling British businesses.

The UK Treasury and financial sector are also working to retain top talent in Britain by making tweaks to tax law, executive compensation, and post-Brexit immigration rules. Supporters of a more vibrant UK stock market are also increasing pressure on bankers managing IPO processes to challenge assumptions about London's poorer liquidity or post-IPO performance relative to rival venues. Though proposed changes to UK listings are encouraging, they may not be enough, especially for industries such as biotechnology, which say the government has a huge task ahead. The BioIndustry Association and research company Clarivate showed that only £28m was raised in IPOs by British biotech companies in 2022, compared to £1.4bn in the United States. Photo by Tristan Surtel, Wikimedia commons.