Collective action from government, regulators and industry is urgently needed to revitalise UK Growth Markets and keep the value, innovation, jobs, tax revenues, and talent they support here in the UK, according to a new paper out today from TheCityUK.
The paper, ‘Catalysts for growth: Boosting UK Growth Markets’, suggests that despite their reputation for easier access to capital than main markets, a lack of focus on Growth Markets alongside challenges such as market volatility, liquidity concerns and a narrower pool of institutional investors, have led to many innovative companies choosing to continue their growth outside the UK.
However, given the UK government’s renewed focus on improving the business environment, an increase in the backlog of demand for European listings, and geopolitical developments causing many innovative companies around the world to consider which jurisdictions best align with their values, there is a significant window of opportunity to take action and bolster the competitiveness of UK Growth Markets.
Miles Celic, Chief Executive Officer, TheCityUK, said, “High-growth, innovative companies are an essential part of what fuels the economy right across the country. It is crucial that that they can access the capital they need from UK Growth Markets to grow and develop, not least to avoid them moving overseas.
“The health of the UK Growth Markets is the responsibility of all who engage with them, and we urge the government and regulators to work with industry to supercharge their competitiveness, ensure they can continue to support innovative and growing companies, and enable growth right across the country.”
In its paper, TheCityUK sets out 10 strategic enablers to strengthen UK Growth Markets and enhance their ability to contribute to the government’s growth agenda. These include:
1. Establishing a Growth Markets Industry Group: Government should convene a specialist group of experts to help it identify and enact specific ways to improve and champion the UK’s Growth Markets over a specified time-limited period.
2. Encouraging catalytic capital to remain in the UK: Government should ensure that graduation to a UK Main Market does not cause a loss of fiscal incentives. Regulators could consider removing additional admission requirements for companies that have been admitted to a UK growth market and have demonstrated an appropriate level of maturity.
3. Setting out a clear strategy for retail participation: To allow individuals across the country to benefit from growth companies developed and grown in their regions.
The full set of strategic enablers can be found on pages 8-10 of the paper.
ENDS