Brexit is a win for the City of London, with new businesses bringing in £13.9 billion – three times the amount forecast for 2020.
LONDON has received a Brexit boost after new company listings in the UK markets raised £13.9 billion in 2021, three times more than in 2019, the last full year before Brexit.
Deliveroo came out on top with £1.5 billion in revenue, followed by Dr Martens plc with £1.3 billion.
In 2021, the first full year after Brexit, 108 new companies were founded in the capital, with a total value of £14 billion.
This is in sharp contrast to 2019, when only 35 companies were listed, and 38 in 2020.
It comes after Chancellor Rishi Sunak overhauled the UK’s public company listing regime in an attempt to entice tech behemoths to the capital.
Mr Sunak stated that the United Kingdom would “modernize” its listing rules in order to attract more high-growth and “blank check” SPAC company flotations to London.
“It’s fantastic to see that the City remains one of the best destinations for firms to go public,” Mr Sunak said, citing signs that it is working in the post-Brexit era.
He claimed that the regime would make London “more open, competitive, technologically advanced, and sustainable.”
In 2021, 53 companies were listed on the London Stock Exchange, generating £11 billion in revenue, compared to 22 in 2020 and 25 in 2019.
“The City leads a highly competitive global market, but with envious Continental rivals,” Professor Daniel Hodson, Chairman of the CityUnited Project and The City for Britain, told Facts4EU.
“Brexit gives it massive opportunities to secure its position through quick regulatory reform, but the earliest possible launch of a wholesale Sterling Central Bank Digital Currency is needed to protect its core payments and settlements system from a continuing EU onslaught, not least out of Paris.”
Despite Amsterdam surpassing London as Europe’s largest stock exchange a year ago, the news comes as a surprise.
The City of London’s policy chief said it was critical for the UK to gain a competitive edge in global finance following Brexit, but warned that the COVID-19 pandemic could be masking some of the impact of leaving the EU.
After completing its exit from the EU a year ago, Britain’s financial sector lost most of its access to the EU, which had been its single largest export customer.
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