Chancellor Rachel Reeves will say that cutting red tape for firms listing their shares on the London stock markets is “reinvigorating” the City after early signs of a revival.
Ms Reeves also set her hopes on the FTSE 100’s standout year encouraging more Britons to get investing.
The Chancellor’s remarks coincide with the financial watchdog introducing new rules in the UK’s capital markets on Monday.
The new measures lower costs and speed things up for UK businesses looking to secure investment.
“Two years ago, some said the City’s best days were behind it. They were wrong,” Ms Reeves is expected to say at an event in the City of London on Monday.
“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.
“By cutting paperwork and speeding up access to capital, these reforms back the entrepreneurs, innovators and investors who drive our economy – while preserving the high standards and investor protections that make the UK one of the most trusted markets in the world.”
She will add that simpler and faster prospectuses and a more competitive listings regime are “reinvigorating that spirit” of openness in the London markets.
Under the new rules, companies that are already listed on London’s stock markets will not need to publish lengthy prospectuses in order to issue more shares and raise funds, in most cases.
The changes will also halve the time it takes between initial documents being published and an IPO (initial public offering) to list on the London Stock Exchange (LSE).
Furthermore, the LSE hailed the launch of its new “access bonds” initiative on the back of changes that make it easier for bonds to be issued in smaller values, therefore making them more accessible to a wider range of individual investors.
The changes come after the LSE was bolstered by a late spurt in listing activity towards the end of 2025, including the flotations of Princes Group and Shawbrook Bank.
It sparked hopes of a rebound after a prolonged drought in activity and a flurry of UK-listed businesses abandoning London for international rivals.
Meanwhile, Ms Reeves is banking on the recent record performance of the FTSE 100 ushering in more retail investors.
The index, which tracks the performance of the UK’s biggest listed companies, surpassed the milestone 10,000 mark earlier this month for the first time in its history.
It follows a standout year that saw the FTSE rise by 21.5%, the most since 2009.
The Government is working on reforms that will build a retail investment culture in the UK and remove barriers it says are unnecessary, with Britain trailing behind other countries such as the US.
