Commenting on the UK Chancellor’s recent 3-year stamp duty holiday for newly listed firms announced in the latest Budget, Karim Haji, Global and UK Head of Financial Services, KPMG, said:
“Cutting stamp duty may act as a carrot to entice more firms to choose London and signals a real intent to compete. But a single incentive won’t fix the wider challenge. Attracting high-growth businesses requires regulatory clarity, strong valuations, deep pools of capital and a market environment that rewards innovation. Temporarily removing stamp duty is a positive step, but it must sit alongside broader reforms if London is to fully maintain its global competitiveness. If delivered well, this could help build confidence in the UK listings market.”
Commenting on the Cash ISA reforms, Neil Connor, UK Head of Asset Management, KPMG, said:
“Cutting Cash ISA limits won’t suddenly turn savers into investors. Our research shows 87% of ISA holders would stick with cash, with most redirecting excess funds into savings.”
They also stated:
“But these policy changes should drive meaningful behaviour change, by putting a stronger focus on financial literacy and more advice-led, tailored investment products that help savers feel confident about diversifying beyond cash. We welcome that the Chancellor has acknowledged this, but do note that adding complexity to a simple product risks undermining the popularity of ISAs overall.”
Reacting to retail and hospitality related measures announced in the Budget:
Linda Ellett, Head of Consumer, Retail and Leisure for KPMG UK, said:
“Many retailers have long called for business rates reform, as the age of e-commerce grew and the cost of bricks and mortar retail rose. Retailers will be diving into the detail of the changes announced today, with some set to gain and others set to lose, depending upon their respective rateable value. Those losing, will at least, welcome the acknowledgement of impact in the shape of transitional relief and hopefully some permanency of the new arrangement. UK-based online sellers will be more unanimous in their reaction to proposals to ensure that non-UK based online sellers don’t continue to gain a competitive advantage by not having to pay customs duty. The key now will be how quickly the Government can make the change.”
They added:
“KPMG research showed that the number of people feeling that the economy is worsening increased to 62% at the start of the final quarter of the year, up from 43% when 2025 began. And this is having consequences, as despite the majority of people still feeling secure in their personal financial situation, their nervousness about what the economy may mean for them is leading to spending cuts or delay. Those unaffected by income tax thresholds or other measures announced today may now feel confident to get spending again. However, some consumers will feel a tightening as these measures come into place. Retailers and hospitality businesses will be hoping that in the coming months the Government evidence that the economy is growing and provide increased confidence to consumers about the UK’s economic health.”