'Starting to change': Home investors sink record £295bn into UK shares in boost for Rachel Reeves
British investors have increased their shares in UK-listed companies to a record £295bn in a boost to Rachel Reeves, new official figures have revealed.
The Office for National Statistics has published a new report on the ownership of UK quoted shares, covering how their position changed in 2024.
The findings said there was an 0.8 per cent increase from 2022 on UK-residential individuals holding shares in British companies listed on the London Stock Exchange.
A Treasury spokesperson hailed the figures, which come as Chancellor Rachel Reeves seeks to encourage more people to invest in the nation’s listed companies.
She is cutting Cash ISA limits to encourage more investment in stocks and shares and has introduced the ‘Leeds Reforms’ which includes allowing banks to alert customers to specific investment opportunities from this April.
A Treasury spokesperson told The Yorkshire Post: “For too long investing has been the preserve of the wealthy few, but these new figures show that is starting to change.
“As the FTSE continues to reach new heights and show what British businesses can achieve, we’re giving people clearer information and targeted support so they can benefit from this success and boost their personal finances.”
Residents held 11.6 per cent of quoted shares, with overseas investors also increasing their holdings from 57.7 per cent to 58.8 per cent over the same time period.
American investors led the way internationally in investments in UK listed firms, with a collective £693.9bn of holdings.
Banks expanded their holdings to 3.6 per cent, with the Government reducing its stake from 0.6 per cent to 0.2 per cent as it continued to unwind investments in British banks that occurred in response to the global financial crisis in 2008.
While the 2024 British investment figure has increased, Laura Suter, director of personal finance at AJ Bell, said the broader context needs to be considered.
She said: “While the increase could be seen as a sign that more UK individuals are keen to invest and believe in the growth of UK plc, the longer-term figures don’t paint such an optimistic picture.
"If we compare the latest figures to a decade previously, in 2014 individuals owned 11.9e per cent of the stock market – meaning we’ve actually seen a drop over that 10-year period. Looking back further, in 2010 UK individuals owned 11.5 per cent of the UK stock market, meaning the dial has barely moved in the intervening 14 years.
“It’s clear that markets will go in and out of favour over the years, depending on the economy, outlook for the market and sentiment towards it, but the figures highlight that there is a still a long way to go to spark an investing revolution among the UK population.
When the Leeds Reforms were announced, the Treasury said it was an attempt to turn around the UK having the lowest level of retail investment among G7 countries.