Bristol financial services firm Hargreaves Lansdown has backed plans by the Chancellor to launch new online hubs to encourage UK investment.
In her Budget speech to Parliament on Wednesday, November 26, Rachel Reeves announced reforms to the Isa system in Britain.
Under the proposals, the amount people under the age of 65 can put into a cash Isa will be capped at £12,000 a year from April 2027. The remaining £8,000 of the £20,000 total allowance will be reserved for investments.
“Thanks to our changes to financial advice and guidance, banks will be able to guide savers to better choices for their hard-earned money,” Ms Reeves said.
Hargreaves Lansdown, along with investment banking giants HSBC, Lloyds, Vanguard and Barclays, has signed up to launch a hub to help people invest in the UK.
Emma Wall, chief investment strategist at Hargreaves Lansdown, said the initiative had the company’s “full support” and would help meet retail investor demand for the best of British.
“Investment platforms and banks have agreed to champion UK investments in a bid to boost retail flows to London SE listed stocks,” she said.
“Across HL’s two million clients, the UK is by far the most popular investment region, accounting for 35 per cent of the entire platform through either directly held UK shares, or UK equity-focused active and passive funds, investment trusts and ETFs. Nine of the top 20 largest investments in HL clients’ stocks and shares ISAs are UK equity focused.”
Ms Wall said the online hub, alongside a newly announced stamp duty holiday for new listings on the London Stock Exchange, would help boost interest in UK-listed investments.
“London has been losing out to New York in recent years, as businesses favour the funding and regulatory environment of the New York Stock Exchange,” she said.
“But this may be the carrot British businesses need to plump for a domestic listing.
Currently, investors have to pay 0.5% stamp duty tax when they buy shares, but the Chancellor has confirmed this will be waived for new listings for up to three years.
“This would make buying British more enticing for investors and help redress some businesses’ concerns about demand for UK shares.”