Chancellor Rachel Reeves will say cutting red tape for companies listing their shares on London stock markets is “reviving” the City after early signs of a revival.
Ms Reeves also pinned her hopes on the FTSE 100's breakout year, which will encourage more Brits to invest.
The Chancellor's remarks coincide with the financial watchdog's introduction of new rules on UK capital markets on Monday.
The new measures reduce costs and speed things up for UK businesses looking to secure investment.
“Two years ago, some said the City's best days were behind it. They were wrong,” Ms Reeves is expected to say at an event in the City of London on Monday.
“As the FTSE 100 hits record highs and global businesses once again choose London, we are seeing the first signs of a new golden era for the City.
“By reducing paperwork and speeding up access to capital, these reforms support the entrepreneurs, innovators and investors who drive our economy, while preserving the high standards and investor protections that make the UK one of the most trusted markets in the world.”
He will add that simpler, faster prospectuses and a more competitive listing regime are “reviving that spirit” of openness in London's markets.
Under the new rules, companies already listed on London stock markets will not need to publish lengthy prospectuses to issue more shares and raise funds, in most cases.
The changes will also halve the time it takes between the publication of initial documents and an IPO (initial public offering) to be listed on the London Stock Exchange (LSE).
Additionally, the LSE praised the launch of its new “access bonds” initiative thanks to changes that make it easier to issue bonds in smaller securities, thus making them more accessible to a wider range of individual investors.
The changes come after the LSE was bolstered by a late surge in listing activity towards the end of 2025, including the listings of Princes Group and Shawbrook Bank.
It raised hopes of a recovery after a prolonged drought in activity and a wave of UK-listed companies abandoning London for international rivals.
Meanwhile, Reeves is confident that the FTSE 100's recent record performance will attract more retail investors.
The index, which tracks the performance of the UK's largest listed companies, surpassed the 10,000 mark earlier this month for the first time in its history.
It follows a standout year which saw the FTSE rise 21.5%, the biggest rise since 2009.
The Government is working on reforms that will create a retail investment culture in the UK and remove barriers it says are unnecessary, as Britain lags behind other countries such as the United States.
