Chancellor Rachel Reeves' ambitious plan to stimulate a stock market surge among UK retail investors has been dealt a significant setback, with the withdrawal of a major platform from a key government initiative.
Major Platform Withdraws from Campaign
Interactive Investor (II), Britain's second-largest retail investment platform, has pulled out of an industry-led marketing campaign that was a central component of the chancellor's Leeds Reforms. The platform, owned by London-listed asset manager Aberdeen, follows rivals including AJ Bell and Freetrade in abandoning the initiative.
The campaign, coordinated by the Investment Association, was announced in July with the aim of explaining the benefits of investing to the British public. It represented a crucial element of Ms Reeves' strategy to "rewire the financial system" through her Leeds Reforms package.
Growing List of Withdrawals
When initially unveiled, the marketing push had secured backing from several major financial institutions including Barclays, Hargreaves Lansdown, London Stock Exchange Group, NatWest and Schroders. However, since the July announcement, multiple named backers have reportedly withdrawn their support.
The departure of Interactive Investor represents a particularly heavy blow given its substantial presence in the retail investment market. Industry sources indicate that cost implications of participating drove the decision to withdraw from the campaign.
Advertising agency M&C Saatchi has been selected to oversee the marketing drive, which is scheduled to launch next year despite the recent withdrawals.
Broader Context of Financial Reforms
This development comes alongside expected reforms to cash ISAs in next week's Budget, where the annual investment limit is anticipated to be reduced from its current £20,000 threshold.
Ms Reeves' proposed ISA changes have already drawn strong opposition from building societies, which have warned of impacts on mortgage lending, and investment industry executives who argue the reforms will add complexity to the system and deter savers.
Both Aberdeen and Interactive Investor declined to comment on their withdrawal from the retail investment campaign when approached by Sky News.
