The FTSE 100 has achieved a historic milestone, breaking through the 10,000-point barrier for the first time ever on Friday, 2 January 2026. This landmark moment is being celebrated as a powerful signal of restored global confidence in London's financial markets and the broader UK economy.
A Resurgent Market and Strategic Reforms
City Minister Lucy Rigby KC MP pointed to the index's remarkable performance, noting it rose by around 21 per cent in 2025, marking its strongest year since 2009 and even outperforming the US S&P 500. She attributes this success to a concerted government effort to enhance the UK's competitiveness.
The recent overhaul of UK listing rules has created a more flexible and attractive regime for companies. This strategic shift is already yielding results, with significant listings such as Princes Group, Shawbrook Bank, and the Beauty Tech Group choosing London. Furthermore, the innovative dual listing by Fermi America exemplifies the kind of activity these reforms aim to encourage.
Government Backing with Tax and Investment
The regulatory push has been bolstered by targeted fiscal measures. A key initiative is the three-year Stamp Duty relief for new IPOs, designed as a clear incentive for ambitious firms to go public in London. "We are prepared to put our money where our mouth is," stated Minister Rigby.
Complementing this, funding from the British Business Bank is being deployed to support scaling companies, helping them to list and grow within the UK rather than seeking opportunities abroad.
Future Momentum and Wider Economic Confidence
The government plans to maintain this momentum throughout 2026. Upcoming changes include updates to the Prospectus Rules and the launch of PISCES, a novel stock exchange designed for private company share trading.
Minister Rigby emphasised that the FTSE record reflects a broader economic stabilisation. This climate features six interest rate cuts, £340bn of private investment, and an IMF forecast predicting the UK will be the second-fastest growing economy in the G7 over the next two years.
Evidence of this renewed appeal is seen in major institutions expanding in the City, the new Revolut HQ in Canary Wharf, and increased investment in cities like Edinburgh, Leeds, and Birmingham.
"My ambition is a City that is once again the outstanding, obvious choice for the world's most exciting companies," Rigby concluded, framing the 10,000-point breakthrough as a decisive step towards that goal for the benefit of the entire country.
