Smaller UK firms need help to end ‘doom loop’, think tank says

Britain’s smaller listed companies can reverse a “doom loop”, driven by plummeting valuations and higher costs and regulation, with help from broader tax exemptions and incentives, a think tank said on Thursday.

Smaller companies represent only 8 per cent of the combined value of Britain’s bourse. But they account for over 80 per cent of listed UK companies, provide key jobs and investment and can become tomorrow’s stockmarket darlings with help from the government, regulators and industry, New Financial said.