Jeremy Hunt called on to boost City with ISA deal and tax break
Chancellor Jeremy Hunt finds himself at the centre of an apparently escalating debate over the future of the City of London, the stock exchange and the investment environment for UK equities.
A growing chorus of industry leaders and financial analysts is urging Hunt to eliminate the stamp duty on share transactions, a move they argue could significantly rejuvenate the beleaguered stock market.
The levy, currently set at 0.5%, is being blamed for driving investors away, and some commentators say it's contributing to a stark decline in new listings and diminishing the UK's appeal as a destination for global capital.
In parallel, there's also a push for innovative changes to Individual Savings Accounts (ISAs), including the introduction of a so-called "British ISA" aimed at encouraging investment in UK company shares.
These reforms are said to be critical steps towards increasing liquidity and investment in the AIM market and beyond, potentially unlocking billions in new capital investment.
Despite the clear demand for change, the Treasury's stance remains firm, defending the stamp duty as a vital source of revenue.
Hunt's position, however, is increasingly contested by experts who highlight the tax's detrimental impact on market competitiveness and the broader economy.
They argue that the benefits of scrapping the duty, combined with a revitalized ISA scheme, would far outweigh the short-term losses to the treasury, leading to a more vibrant and robust capital market.
Explore Bias
Media reports cover a range of perspectives, primarily from financial industry stakeholders advocating for policy changes to enhance the UK stock market's competitiveness and attractiveness to investors.
The emphasis on the negative impacts of stamp duty on share transactions and the potential benefits of ISA reforms could reflect a bias towards the interests of the financial sector and investors, possibly overlooking the Treasury's fiscal and public service funding considerations. Additionally, the framing of the issue often centres on the need for the UK to adapt to global market standards, which might implicitly favour deregulation and tax incentives over other forms of market intervention or public investment.
Explore more articles
- "Scrap ‘pernicious’ share tax to help boost the London Stock Exchange, Hunt told" - Yahoo
- "How changes to ISAs could give AIM shares a welcome boost" - Interactive Investors
- "Why a British ISA could genuinely take off" - Evening Standard
- "Jeremy Hunt may launch ‘British Isa’ investing in UK company shares" - The Guardian"
- "Hunt facing clash with the City as Treasury doubles down on share tax" - City AM
