Sunday 18 January 2026 12:52 pm
Rachel Reeves has hailed new UK listing rules as “reinvigorating” the City of London, citing early signs of a revival in equity market activity and renewed investor appetite.
Speaking at an event in the Square Mile on Monday, Reeves said: “Two years ago, some said the City’s best days were behind it. They were wrong”.
“As the FTSE 100 reaches record highs and global firms once again choose London, we are seeing the first signs of a new golden age for the City.”
The chancellor pointed to reforms cutting red tape for firms looking to list shares in London and halving the time from document publication to IPO.
“By cutting paperwork and speeding up access to capital, these reforms back the entrepreneurs, innovators and investors who drive our economy,” she added.
The changes land as the Financial Conduct Authority (FCA) implements rules making it cheaper and quicker for companies to raise funds in the UK.
These include a new initiative allowing smaller-value bonds to be issued more broadly.
The moves follow a late 2025 flurry of listings, with Princes Group and Shawbrook Bank raising £400m and £348m respectively, lifting total IPO proceeds in London to £1.9bn from 11 deals, its strongest year since 2021.
London eyes retail investment uptick
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Reeves also highlighted the FTSE 100’s milestone performance as a catalyst for broader retail investment.
She noted that the index had surpassed 10,000 points earlier this month after rising 21.5 per cent in 2025, the biggest annual gain since 2009.
She and the Treasury hope simpler listing rules and a three-year stamp duty holiday on new IPOs will boost domestic investor participation.
PwC’s UK IPO leader, Vhernie Manickavasagar, said: “London has delivered its strongest year for IPO and listing activity since 2021”.
“Momentum is set to continue into 2026, with a robust pipeline of large-cap IPOs expected across the Consumer, Financial Services and TMT sectors.”
EY-Parthenon’s Scott McCubbin also added that the final quarter’s surge “was notable, with postponed floatation plans moving ahead amid stabilising market conditions and improving investor sentiment.”
Despite signs of optimism, analysts caution the landscape remains selective, with investors favouring firms showing strong profitability and resilience.
Dan Coatsworth, head of markets at AJ Bell, noted that while FTSE 100 returns were robust, new London IPOs delivered an average -3.3 per cent last year, reflecting continued caution among market participants.
Looking ahead, London’s market hopes to capitalise on fintech floats, major retail IPOs, and policy reforms to secure its position against international rivals.
