Make The City Thrive: resetting London's narrative as a global financial hub

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Our Make The City Thrive report draws on the perspectives of 150 UK-based senior decision makers working across financial services organisations to explore London’s future as a global listing destination - and why this matters for UK growth.

With headlines focusing narrowly on a handful of high-profile listing decisions and subdued IPO activity, London’s position as a global listing destination has come under scrutiny.

The findings reveal that this narrative is wrong. London remains Europe’s leading financial centre. The challenge it faces isn’t capability – it’s perception.

Read on for more findings and explore the full report.

Make the city thrive

London’s role as a listing destination and why it matters for UK growth.

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The narrative of decline is wrong

Recent IPO headlines have raised questions about London’s appeal as a financial destination.

But when viewed in a global context, the data tells a more balanced – and confident – story. London’s position on the Global Financial Centres Index remains secure, with only New York ahead of it globally. And when we zoom into Europe, London is the leading financial market.

The fundamentals that have long underpinned the City’s markets - deep pools of capital, global investors, strong governance regulation, and a highly-developed professional and financial services ecosystem – remain.

What’s more, geopolitical and economic instability has meant that subdued IPO activity has been seen globally – not just in London.

So, where does the decline narrative come from?

Recent IPO headlines have exacerbated the narrative that London is losing its appeal as a listing destination. The reality is more balanced. And this narrative risks overstating the challenge and overlooking the big picture.

Svetlana Marriott

Head of UK Capital Markets Advisory Group

KPMG in the UK

London’s IPO story

After several subdued years, IPO activity in London made something of a comeback in 2025, registering the strongest IPO year since 2021. Total proceeds from London IPOs almost trebled in 2025 compared to 2024. And while geopolitical uncertainty continues to weigh on activity, a number of larger transactions towards the end of the year has created a credible springboard for 2026.

One or two well-executed flagship IPOs could have an outsized impact, giving others the confidence to follow. If those businesses choose London and perform well, the narrative shifts towards growth and momentum. If they continue to opt for the US and other markets, the perception gap widens and London’s story becomes harder to tell.

The next wave of listings will either help reset confidence in London’s IPO market, or risk locking in a perception problem. The market is structurally ready. The question now is whether confidence and capital are ready to follow.

Svetlana Marriott

Head of UK Capital Markets Advisory Group

KPMG in the UK

London is still where the world comes to do business

Six in 10 (60%) financial services leaders plan to invest more in their London operations over the next five years, with more than a quarter saying they will invest ‘much more’. On average, they are committing 21% of total revenues to London this year, rising to 25% over the next five years, and almost a quarter plan to invest more than 40% of revenues in the City over that period.

London is very much still the place where the world comes to do business.

London’s strengths are active and enduring. And while it’s a particularly British thing to downplay our strengths, in today’s competition for capital, talent, innovation and ideas, now is the time to be clearer, more confident, and more ambitious in telling that story.

Anna Purchas

Vice Chair, London Office Senior Partner

KPMG in the UK

How do we make the City thrive?

When financial services leaders were asked what would define success for London’s IPO market, stronger post-IPO performance ranked higher than an increase in listing numbers. That’s telling, because long term success depends on having the right ecosystem in place, not just getting companies to market.

Much has been done to strengthen London’s capital markets – from regulatory reform to new incentives. And the 2026/27 pipeline is healthy. The next phase is about ensuring listed businesses are set up for success.

What’s holding London back isn’t capability, but confidence and perception. That’s why visible IPO success - backed by long term capital - matters more than headline volumes. Our report sets out what needs to happen next.

London is ready, and the UK has the capital firepower to back growth. But investment only comes with confidence. Success at this point depends less on infrastructure and more on how well we tell London’s story as a place to back growth.

Karim Haji

Global and UK Head of Financial Services

KPMG

About the data in this report

The findings in this report draw on data from KPMG UK’s Financial Services Sentiment Survey. The research was conducted by Opinium on behalf of KPMG using an online quantitative methodology. It is based on responses from more than 150 UK based senior decision makers at director level and above, working across financial services organisations. The survey was in field between 23 February and 4 March 2026.