British tech company Jewel smells Rishi’s and Boris’s ads and makes its way onto Wall Street.

The UK’s reputation as a major international financial center has taken a double whammy after a major tech company shrugged off calls from the prime minister to list in London, opting for New York instead.

The second blow came when CRH, one of the world’s largest building materials companies, said it would recommend that its shareholders leave London and go public in New York.

Arm plc, which has been called the “jewel of the British tech industry” for developing technologies used in electrical equipment around the world, has reportedly opted for a New York listing despite backing from both Rishi Sunak and former Prime Minister Boris Johnson. courted. The owners, SoftBank Group, will keep their headquarters in Cambridge.

The decision not to locate Arm in London came after Jamie Urquhart, co-founder of the tech company, questioned the government’s tech strategy. Mr. Urquhart criticized the ministry’s plans to develop and manufacture semiconductors.

“The government has been talking about these things for a long time. There was very little continuity, very little strategy. We are already waiting for the government to come up with a semiconductor strategy.”

He said the US, China, Europe and Japan have moved forward. “Here in the UK, there is very little. I think the government is either not ready to take on nettles, or they are just too busy and just don’t think about it,” he told Bloomberg Radio.

Semiconductor shortages have caused widespread disruption in various industries around the world, and the UK’s vulnerability to semiconductor imports has led many to question the wisdom of its policies.

CRH, a Dublin-based London Stock Exchange-listed company that already earns most of its profits in the US, said the move would bolster its ties at a time when it expects the US President’s infrastructure plans to benefit Joe Biden. attachments.

Gaming group Flutter is also considering a move to the US, and oil and gas company Shell is also reportedly considering a move. Several other companies have explored or are actively considering moving their listing to the United States.

Flutter said early shareholder feedback has been positive. Last year, the Ferguson plumbing group moved its main listing to New York and pulled out of the FTSE 100.

In another loss of prestige, the UK has lost its crown as Europe’s largest stock market, while France took first place last year.

Rachel Reeves, the Labor Shadow Chancellor at the Treasury, said companies wishing to go public outside of London “should be of great concern to the government both about the health of the British economy and about future tax revenue”.

Russ Mould, chief analyst at AJ Bell, said: “The London Stock Exchange has to work overtime to keep stocks already listed, let alone raise new ones.

“Attempts to loosen admission rules to bring more companies to London seem a bit desperate.

“It was supposed to be an honorable mention in the UK, but that reputation is fading fast. Foreign investors lost interest in the trading platform after the UK voted to leave and valuations got even cheaper. This is hardly a good argument for attracting more large companies.”

The head of the London Stock Exchange, David Schwimmer, said that London is “the most international financial center in the world” and continues to attract companies and investors. According to him, the reforms announced by the government will increase its attractiveness as a financial center.