Rachel Reeves slammed for ‘bizarre tax’ hurting millions of Brits

The new Lord Mayor of London, , has launched a scathing critique of over a tax on investment in UK shares, claiming it undermines British businesses and discourages growth.

At the heart of the debate is the on share purchases, a levy forecast to raise £4.2bn for the in 2024-25.

Critics argue the tax puts British investors at a disadvantage, as no such duty exists when investing in US-listed companies.

“There is no stamp duty in relation to investing in New York-listed assets,” Mr King .

“So effectively you’re starting further behind because your costs of investment are increased.”

The City of London has faced mounting challenges, including a shrinking share of global listings and high-profile exits like microchip designer Arm and industrial giant Ashtead, which recently announced plans to shift its primary listing to the US.

Mr King urged the Chancellor to scrap or at least reduce the stamp duty, emphasizing that even a targeted cut, such as removing the tax for smaller, high-risk businesses on the AIM market, would cost only £650m and could significantly boost investment.

“Markets have moved on, and the regulatory environment has not kept pace,” he said, warning of complacency and the erosion of the London Stock Exchange’s competitiveness.

Mr King also criticised tax breaks for ISAs, calling them “bizarre” for allowing tax-free savings in cash or foreign shares, which he argued subsidises American tech giants at the expense of UK businesses.

“Why are we giving tax breaks for people to keep money in cash? It’s bizarre,” he said. “You give tax breaks to people who want to take risks with their capital.”

Reeves has called for regulatory reform to tear down barriers to growth, but Mr. King insists bolder steps are needed to restore the City’s global standing.

“We need to get back into sell mode,” he urged, advocating for proactive promotion of London’s financial markets to global investors.