Aim boss makes plea to boost market's appeal after inheritance tax blow
Aim has suffered a raft of firms quitting the market in recent years as part of a wider shift away from London towards overseas rivals and as firms are bought out by foreign competitors or taken private.
More than 60 firms – with a market cap of over £12 billion – have already announced plans to leave Aim in 2025 as they look to move to the main market, delist or are bought out.
As Aim celebrates its 30th anniversary on Thursday, Mr Stuttard told the PA news agency that the Government can help stop the outflow of firms on London's beleaguered market, with 'more companies leaving than joining in the last two years'.
He said the cut to IHT relief was a major blow.
'One hundred per cent relief has been and used to be really important to Aim,' he said.
'We are calling on the Government to make sure there's certainty… with financial incentives to support Aim.'
He also backed Government plans to increase pension fund investment in UK stocks, saying it was crucial that 'domestic investors back our domestic economy'.
He told PA: 'International investors understand the quality of our small businesses – we need our own pension funds to be backing that opportunity.
'It's vital that our UK pension funds back the UK economy.'
The Aim – or Alternative Investment Market – was launched in June 1995 to give small and medium-sized firms access to capital.
In the 30 years since, it has admitted more than 4,000 companies and raised over £136 billion.
There were about 1,700 businesses listed on Aim in 2007, but this has dwindled to fewer than 700.
Some of this is down to costs of listing and onerous rules and regulations.
Mr Stuttard said the group is working on a discussion paper to ask firms how Aim could change and evolve and what are the current downsides of listing on the market.
He said 'nothing is off the table' in terms of what could be looked at, with the market keen to see the consensus for a way forward.
He said it is clear there is still a strong need for Aim to help companies get access to capital to grow without resorting to selling.
'From start-up to initial public offering (IPO) to big global business, we want to provide companies with a range of choice of financing options so they don't get sold too early,' according to Mr Stuttard.
'Aim is a really important part of the UK economy and the UK capital markets,' he added.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
ITV News
13 minutes ago
- ITV News
Uncertainty over future of Teesside bioethanol plant but company remains 'positive'
A bioethanol plant on Teesside is having urgent discussions with the Government following an announcement that grant funding will not be provided to support the sector. Ensus, based at Wilton site near Redcar is one of the two largest bioethanol producers in the UK - the other being Vivergo Fuels, in Hull. The firms have been in consultation with the Government following a trade deal made with the US allowing American ethanol to be imported tariff free. While Vivergo, which is owned by Associated British Foods (ABF), has now said its facing closure within weeks, Ensus says the future is more "positive" because of the carbon dioxide it makes as a bi-product of bioethanol. The Department for Business and Trade said it had to make the "difficult decision" not to offer support, citing that it would not be "value for the taxpayer", but added that proposals are being worked on to support CO2 supply. Mon 16 June: Chemicals firm on Teesside warns UK-US trade deal could shut them down in a matter of weeks Ensus, which is owned by German company Sudzucker and CropEnergies, is the country's only large scale producer of the gas, providing 30-60% of the CO2 needed in the UK. Grant Pearson, Chairman of Ensus UK, said: "I met with Sarah Jones, the Minister for Business, today to receive the Government's response to our request for financial support and the policy changes required to ensure that the Ensus facilities can continue to operate. "The Minister confirmed that they value both our contribution to the UK economy, the jobs we provide and support in the North East of England and in particular our production of biogenic CO2 which is a product of critical national importance. "They are therefore looking at options to secure an ongoing supply of CO2 from the Ensus facility. "This is positive news, however it is likely to take time to agree upon and finalise and therefore urgent discussions will be taking place to provide a level of assurance to the Sudzucker and CropEnergies Boards that there is a very high level of confidence that an acceptable long term arrangement can be reached." Ensus employs 100 people, and impacts around 3,000 in its supply chain. Until May, all ethanol imported into the UK from the US was subject to a 19% tariff. After the deal was made the eradicate the import fee, Ensus told ITV Tyne Tees that it could not compete in the market without Government support. Vivergo, which employs more than 160 people, said it was now beginning consultation with staff to wind down the plant – a process which could see production stop before 13 September. A spokesperson for the Department for Business and Trade said: 'This Government will always take decisions in the national interest. That's why we negotiated a landmark deal with the US which protected hundreds of thousands of jobs in sectors like auto and aerospace.'We have worked closely with the companies since June to understand the financial challenges they have faced over the past decade, and have taken the difficult decision not to offer direct funding as it would not provide value for the taxpayer or solve the long-term problems the industry faces.'We recognise this is a difficult time for the workers and their families and we will work with trade unions, local partners and the companies to support them through this process. We also continue to work up proposals that ensure the resilience of our CO2 supply in the long-term in consultation with the sector.'
Wales Online
43 minutes ago
- Wales Online
Next's autumnal cardigan that is 'richer and more luxurious' and ideal for season change
Next's autumnal cardigan that is 'richer and more luxurious' and ideal for season change The new cardigan from Next has been described as 'feels soft and good quality' The Next store, which has revealed better-than-expected sales over the summer (Image: PA) Next has launched a new cardigan that's perfect for chilly summer nights and the transition into autumn and our shopping team are impressed by the "gorgeous autumnal shades". The Threadbare Crew Neck Structured Knitted Cardigan - available in brown, black, red and green. Stocked in sizes eight to 18, the £25 piece can be machine washed and is crafted from a blend of 54% viscose, 28% polyester and 18% nylon at Next. Or for a more budget-friendly alternative, Marks and Spencer offers a Crew Neck Button Front Cardigan at just £19.50, available in six shades including raspberry, red, black and pink, reports Birmingham Live. For those seeking premium quality, Boden stocks the Eva Cashmere Crew Cardigan priced at £139, with nine colour options and earning a 4.5 star rating from over 220 customers. READ MORE: Next's new 'beautiful' bedding set is 'great value for money' starting at £15 READ MORE: I swapped my AirPods for these bargain Sony headphones - and I'm never going back As it's a recent launch, the Next cardigan has garnered just three reviews thus far. For money-saving tips, sign up to our Money newsletter here Next's cardigan costs just £25 and comes in four colours (Image: Next) One shopper commented: "Feels soft and good quality. Thicker and warmer than I expected so have not worn it yet." A second buyer noted: "Nice cardigan, more suitable for colder weather, well made, reasonable price." Though one customer expressed disappointment: "I thought the cardigan was really nice and fitted well, but did return, as the green colour was not for me in the end." Next describes the piece as: "Keep it classic with our Threadbare crew neck structured cardigan, a timeless essential for layering in style. Jacquard milano knit fabric. Article continues below "Ribbed crew neck. Long sleeves with ribbed cuffs. Structured waist with ribbed hem. Self fabric covered button through fastening to waist."
The Guardian
2 hours ago
- The Guardian
The economic roundtable is Jim Chalmers' chance for bold reform. Australians can't afford anything less
Jim Chalmers had a determined look about him this week, ahead of the government's much-hyped economic reform roundtable in Canberra. The atmosphere in the treasurer's office was reminiscent of the days immediately before a federal budget, with frenetic activity and an air of sleep deprivation among the small army of advisers. Preparations for the three-day event have been exhaustive and Chalmers works at a pace few people in the ministerial wing can sustain. Armed with a small page of handwritten notes, Chalmers told this column that the process of consulting with hundreds of individuals and organisations about how to turn around the country's productivity challenges had been more than worthwhile, as 30-odd attenders prepare to take their seats at the cabinet table on Tuesday morning. There's no doubt new approaches are needed. Productivity has barely grown at all since 2016. The stagnation in the Australian economy poses a threat to living standards, since working smarter is the long-run driver of securing higher incomes for households. Ken Henry, the former Treasury boss and summit invitee, puts the challenge another way. He calculates Australian workers have lost about $500,000 in potential pay rises over the past 25 years because of sclerotic productivity growth. 'I see it as three days to help inform three budgets,' Chalmers said, sitting at a conference table in the office previously occupied by Wayne Swan, his former boss and mentor. Family photos and a curated collection of books about politics and history dominate the space. Conscious of messaging and expectations in Canberra and beyond, Chalmers said outcomes from the roundtable would fuel and inform future decisions of the government, helping set a direction for Labor in this term of parliament an others to come. Solutions to emerging problems such as AI and an ageing population are also badly needed. Sign up: AU Breaking News email The event itself has required more than a little productivity already. Treasury received 900 submissions – twice the number of pitches received before Labor's jobs and skills summit early in the government's first term. Chalmers has held boardroom talks with business leaders and lobby groups, while ministers have convened more than 40 preparatory meetings of their own, attended by about 700 people. The Productivity Commission has released a slew of reports to guide the process. Bureaucrats in Chalmers' department have used AI to organise and structure this massive input of ideas, including the predictable mix of kite flying, influence peddling and ambit claims. On Friday, Chalmers sat down with his state and territory counterparts for the last of these events. Talking up consensus, the group agreed to work towards faster approvals for major infrastructure projects, to cut cumbersome and outdated regulation, to boost competition and build more homes more quickly. Some serious ideas are in the mix, illustrated by an awkwardly timed Treasury leak this week, which showed Labor was preparing to move forward with reforms to clear a backlog of 30,000 housing approvals held up by outdated environmental laws, as well as new rules for AI and a pause on changes to the National Construction Code. 'There's been a heap of effort,' Chalmers said. 'Working around the clock for four weeks to make sure that people's voices are heard and that we can shape up a meaningful and useful roundtable.' The meeting has become an organising tool for Labor's second term, including allowing Chalmers and Albanese to test ideas with voters and the media, and rule some ideas out. The prime minister has also stressed the government won't misjudge its mandate or foist new taxes on the electorate. Overdue ideas already firmly in need of resolution are being attached as well: changes to Howard-era national environmental laws will get a kick along and Anthony Albanese telegraphed this week that road user charging rules for electric vehicles would be thrashed out over the roundtable. Here a phased-in and staged approach is expected, treating heavy vehicles differently to ensure EV take-up continues to grow in line with the renewables transition. Labor might even come away with an idea or two for major reform proposals to take to voters at the next election, putting its thumping victory over Peter Dutton to use. But the lead-up to the summit hasn't all been smooth sailing. It emerged on Wednesday that Chalmers and Albanese had held a face-to-face meeting last week after a reported 'frisson' over expectations for the summit. Albanese appeared frustrated at some mission creep for the talks and the pair discussed the need to 'be on the same page' about major tax reform plans and the scale of Labor's ambition. After the story emerged, both were quick to say they meet all the time, while the finance minister, Katy Gallagher, talked up their cooperation at the heart of the government. Despite not wanting to shut down ideas ahead of the summit, Albanese and Chalmers have rejected calls to change the rate and base of the GST, and ruled out negative gearing and capital gains tax concession rule changes. The Australian Council of Trade Unions called for a four-day week for workers, without any loss of pay, a reform that feels both eminently possible in the future but too ambitious for the present. The Greens want Labor to move faster with expensive plans for universal childcare, an ambition Albanese is laying the groundwork for already, while the Coalition is both taking part in the talks and deriding them as akin to a tour of Willy Wonka's chocolate factory. It is unclear who will play the role of Augustus Gloop in this scenario. Labor can't afford not to be bold. It has identified the productivity problem and told voters it is better placed than the Coalition to manage the economy. Chalmers wants to be remembered as a reforming treasurer, and aspires to higher office, but will need to convince his colleagues – and the sometimes more cautious prime minister – of the case for ambition. Chalmers and Albanese made their own job harder by raising the prospect of sweeping tax reform at the start of the process, only to quickly shut down some of the serious proposals in a bid to manage expectations. The best way to undermine claims that the roundtable is a stage-managed talkfest is to make it a success: to take up real economic reform options that drive growth and boost productivity. Strengthening the budget and lifting living standards is as necessary as it is difficult, but buy-in from roundtable participants will be a crucial start, even if Labor has to spend political capital to get the job done.
