Merryn Talks Money How to Fix the UK Stock Market Quickly and Cheaply
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Jun 11, 2025 Bloomberg UK's Wealth Editor dives into the fascinating interplay between government policy and the UK stock market. Key discussions revolve around the need to scrap stamp duty and reform ISAs to encourage domestic investment. They explore the impact of special interest groups resisting necessary reforms and highlight the recent rise of the FTSE 100 amidst global comparisons. With insights on the government's spending review, the conversation is packed with strategies to revitalize the market and ensure a brighter investment landscape!
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UK Public Spending and Debt Insight
- The UK is facing massive spending with public spending running at 45% of GDP from 2024 to 2029.
- Historical tax revenue limits suggest taxes will have to rise and debt servicing costs will increase, leading to economic difficulties.
Government Power and Special Interests
- UK government's failure to fix systemic issues stems partly from devolved powers to quangos and interest groups.
- These groups resist change to protect their cushy jobs, making reforms difficult despite a large majority government.
Fix UK Stock Market Quickly
- To revitalize the UK stock market, abolish or drastically cut the 0.5% stamp duty on equity trading.
- Encourage tax-advantaged investments to flow into UK equities and nudge pension funds to invest domestically.