Far from being irrelevant, UK public equity markets are a vital public good essential for tax revenue, corporate transparency, and economic growth, which requires urgent tax reforms to encourage companies to list and remain in the UK, says Charles Hall

There is a school of thought that thinks public equity markets are relatively unimportant and that access to private markets is all important. And when companies are listed, many consider the location of listing as largely irrelevant. For many reasons this is far from the mark and needs to be challenged. In reality public markets are a public good and a vital part of our financial ecosystem and economy. Far from ignoring public markets, we should be actively addressing any challenges and ensuring that our markets are healthy and fit for purpose.

So what are the challenges? The key ones are the globalisation of capital, the growth of passives and the scale and allure of the US. All of these are long-term trends that are not likely to change any time soon. So, if we want to have a thriving UK equity market we need to encourage UK capital to stay at home, to attract overseas investment and to ensure that the best companies want to list and stay in the UK.

Just consider whether Thames Water would have been able to operate in the way it did for the length of time it did if they had been subject to greater scrutiny.........

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