The UK should begin taxing crypto purchases in a bid to sway Britons to invest in local stocks, which could boost the country’s economy, says the chair of investment bank Cavendish, Lisa Gordon.
“It should terrify all of us that over half of under-45s own crypto and no equities,” Gordon told The Times in a March 23 report. “I would love to see stamp duty cut on equities and applied to crypto.”
Currently, the UK lumps a 0.5% tax on shares listed on the London Stock Exchange, the country’s largest securities market, which brings in around 3 billion British pounds ($3.9 billion) a year in tax revenue.
Gordon added that a cut could sway people to put their savings into shares of local companies, which could then spark other firms to go public in the UK and help the economy.
In comparison, she called crypto “a non-productive asset” that “doesn’t feed back into the economy.”
“Equities provide growth capital to companies that employ people, innovate and pay corporation tax. That is a social contract. We shouldn’t be afraid of advocating for that.”
The country’s Financial Conduct Authority said in November that crypto ownership rose to 12% of adults, equivalent to around 7 million people. A majority of crypto owners, 36%, were under the age of 55 years old.
Gordon said that many had “shifted to saving rather than investing,” which she claimed “is not going to fund a viable retirement.”
A 2022 FCA survey found that 70% of adults had a savings account, while 38% either directly held shares or held them through an account allowing nearly 20,000 British pounds ($26,000) of tax-free savings a year — around three in four 18-24 years olds held no investments.
A quarter of 18-25 year olds and a third of 25-44 year olds held any investment in 2022. Source: FCA
But in a follow-up survey, the regulator reported that in the 12 months to January 2024, the cost of living crisis had seen 44% of all adults either stop or reduce saving or investing, while nearly a quarter used savings or sold their investments to cover day-to-day costs.
Gordon is a member of the Capital Markets Industry Taskforce, a group of industry executives aiming to revive the local market, which Cavendish would benefit from as it advises companies on how to navigate possible public offerings.
Consulting giant EY reported in January that the London stock market had one of its “quietest years on record,” with just 18 companies listing last year, down from 23 in 2023.
At the same time, EY said 88 companies delisted or transferred from the exchange, with many saying they moved due to “declining liquidity and lower valuations compared to other markets” such as the US.
However, Gordon claimed the UK is a “safe haven” compared to markets such as the US, which has lost trillions of dollars in its stock markets due to President Donald Trump’s tariff threats and fears of a recession.
Crypto markets have also slumped alongside US equities, with Bitcoin (BTC) trading down 11% over the past 30 days and struggling to maintain support above $85,000 since early March.
In the past 24 hours, at least, Bitcoin is up 2%, trading around $85,640.
It was a prescient and – as it turned out – incredibly optimistic sign off from Peter Mandelson after eight years as Chancellor of Manchester Metropolitan University.
“I hope I survive in my next job for at least half that period”, the Financial Times reported him as saying – with a smile.
As something of a serial sackee from government posts, we know Sir Keir Starmer was, to an extent, aware of the risks of appointing the ‘Prince of Darkness’ as his man in Washington.
But in his first interview since he gave the ambassador his marching orders, the prime minister said if he had “known then what I know now” then he would not have given him the job.
For many Labour MPs, this will do little to answer questions about the slips in political judgement that led Downing Street down this disastrous alleyway.
Like the rest of the world, Sir Keir Starmer did know of Lord Mandelson’s friendship with the paedophile Jeffrey Epstein when he sent him to Washington.
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The business secretary spelt out the reasoning for that over the weekend saying that the government judged it “worth the risk”.
Image: Keir Starmer welcomes Nato Secretary General Mark Rutte to Downing Street.
Pic: PA
This is somewhat problematic.
As you now have a government which – after being elected on the promise to restore high standards – appears to be admitting that previous indiscretions can be overlooked if the cause is important enough.
Package that up with other scandals that have resulted in departures – Louise Haigh, Tulip Siddiq, Angela Rayner – and you start to get a stink that becomes hard to shift.
But more than that, the events of the last week again demonstrate an apparent lack of ability in government to see round corners and deal with crises before they start knocking lumps out of the Prime Minister.
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4:02
‘Had I known then, what I know now, I’d have never appointed him’ Starmer said.
Remember, for many the cardinal sin here was not necessarily the original appointment of Mandelson (while eyebrows were raised at the time, there was nowhere near the scale of outrage we’ve had in the last week with many career diplomats even agreeing the with logic of the choice) but the fact that Sir Keir walked into PMQs and gave the ambassador his full throated backing when it was becoming clear to many around Westminster that he simply wouldn’t be able to stay in post.
The explanation from Downing Street is essentially that a process was playing out, and you shouldn’t sack an ambassador based on a media enquiry alone.
But good process doesn’t always align with good politics.
Something this barrister-turned-politician may now be finding out the hard way.
Sir Keir Starmer will be “completely exonerated” over the scandal around Peter Mandelson’s relationship with disgraced financier Jeffrey Epstein, Gordon Brown has told Sky News.
The prime minister was forced to sack Lord Mandelson as the UK’s ambassador to the US last Thursday after details of the peer’s relationship with Epstein emerged in the media.
Emails between Lord Mandelson, a minister under Tony Blair and Mr Brown, and the convicted sex offender revealed that the ex-minister sent messages of support to Epstein even as the US financier faced jail for soliciting prostitution from a minor in 2008.
But Mr Brown told Sky News’ Darren McCaffreythat he believes the prime minister will be “completely exonerated” once “the record is out” on the matter.
The former prime minister said: “I don’t want to criticise Sir Keir Starmer’s judgement, because he faces very difficult decisions and we’re talking about a very narrow area for timing between a Tuesday and Thursday.
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Image: Sir Keir Starmer with Lord Peter Mandelson
“I think once the record is out, Sir Keir Starmer will be completely exonerated.”
However, Mr Brown did admit that the situation “calls somewhat into his judgement”.
He said: “I think every government goes through difficulties. Probably 15 years ago, when I was in government, you’d be asking me questions about what had happened on a particular day.
“But this is not really in the end about personalities. In the end, it’s about the policies.
“If you ask people in the street, they might say, well, interesting story, terrible thing that happened to these girls, but also they will say, look what’s happening to my life at the moment, what’s happening to my community, what’s happening to my industry, what’s happening to the whole region.
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1:48
The Prime Minister is facing serious questions over his appointment of Peter Mandelson as the US ambassador.
“I think we’ve got to think that politics is about changing people’s lives and making a difference in those areas where they want to do things.”
Sir Keir has insisted that Lord Mandelson went through a proper due diligence process before his appointment.
However, speaking publicly for the first time since he sacked Lord Mandelson on Thursday night, he said: “Had I known then what I know now, I’d have never appointed him.”
Sir Keir said he knew before Prime Minister’s Questions on Wednesday afternoon that Lord Mandelson had not yet answered questions from government officials, but was unaware of the contents of the messages that led to his sacking.
He said Lord Mandelson did not provide answers until “very late” on Wednesday, which was when he decided he had to be “removed”.