The Association of Investment Companies (AIC) has called on incoming Prime Minister Andy Burnham to abolish stamp duty on share trading, warning that the levy is driving foreign capital away from London and threatening the competitiveness of the UK equity market.
The industry body argues that the transaction tax, which applies to purchases of UK-listed shares, has become a significant drag on liquidity and investor sentiment.
With Burnham set to assume office on Monday, the AIC is positioning the removal of the duty as a critical first step to reversing the trend of capital flight and restoring confidence in British financial markets.
The call for fiscal reform extends beyond the equity sector.
Earlier this week, Berkeley Group, the UK’s largest residential developer, issued a stark warning that the new-build housing market faces no prospect of material improvement without decisive government intervention.
The developer specifically cited the need for stamp duty reductions to stimulate demand, highlighting a broader consensus across UK industries that transaction taxes are stifling economic activity.