Looser bonus rules and tax breaks needed to save London stock market, says CBI

Industry lobby group draws up 20-point plan to stop London ‘drifting into irrelevance’

• Nils Pratley: London’s stock exchange needs a shot in the arm from the Treasury

The London stock market risks “drifting into irrelevance” without government and regulatory reforms, ranging from tax breaks for stock market listings to looser bonus rules for directors, a lobbying group has said.

The 20 recommendation put forward by the Confederation of British Industry (CBI), which lobbies on behalf of UK businesses, suggest financial incentives, marketing campaigns and boardroom pay are central to guaranteeing the future success of the London Stock Exchange, which has been losing stock market listings and floats to foreign rivals.