Chancellor holds talks with City chiefs in bid to thrash out UK ISA plan

Bosses from HSBC, Peel Hunt and Schroders are among those meeting Jeremy Hunt for talks on reforms to boost the competitiveness of UK equity markets, Sky News learns.

Mark Kleinman

City editor @MarkKleinmanSky

Tuesday 9 January 2024 11:09, UK

Chancellor of the exchequer Jeremy Hunt speaking at the Resolution Foundation conference at the QEII Centre in central London. Picture date: Monday December 4, 2023.
Image: Chancellor of the Exchequer Jeremy Hunt
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Jeremy Hunt held talks with some of the City's top business leaders on Tuesday in a bid to inject fresh momentum into London’s flagging market for new company listings.

Sky News understands the chief executives of asset managers Abrdn and Schroders and their counterpart at HSBC Holdings were among those scheduled to attend a breakfast summit with the chancellor.

City sources said the objective of the meeting was to review existing initiatives aimed at boosting the competitiveness of UK equity capital markets following the Mansion House reforms unveiled last year by Mr Hunt.

Among the measures he announced last summer was a move to liberalise the rules governing the spectrum of assets in which pension funds can invest.

The London Stock Exchange has been hit by a number of prominent multinationals, including gaming group Flutter Entertainment, building materials company CRH and TUI, the tour operator, either cancelling their UK listings or drawing up plans to.

Mr Hunt is expected to announce further measures to bolster the financial services industry's international competitiveness in his Budget in early March.

Among these could be the creation of a UK ISA, which would support investment into London-listed companies.

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"The chancellor wants to hear ideas from industry about how such a plan might work and how they see it supporting the City and the UK economy," said one source.

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Stephen Bird, the abrdn chief executive; Schroders boss Peter Harrison; Noel Quinn, HSBC's group CEO; Andy Briggs, Phoenix Group CEO; Steven Fine, Peel Hunt chief executive; and Citi executive David Livingstone were expected to be at the meeting with Mr Hunt.

Bim Afolami, the new City minister, was also due to attend, the source added.

The Treasury has been contacted for comment.