This report is an extension of the eighth edition of AFME’s annual Capital Markets Union: Key Performance Indicators report, which tracks the development of the European capital markets ecosystem. The purpose of this report is to assess the UK’s progress in enhancing and expanding its capital markets against a set of benchmark indicators.
We group our eight indicators into four areas which seek to measure the various features needed to develop an efficient, deep, and interconnected capital market, namely:
- Access to capital
- Availability of pools of capital for investment
- Transition to sustainable finance and digitalisation
- Efficiency of capital markets ecosystem and integration
We compare the evolution of the UK’s capital market, according to our indicators, with other global regional peers such as the United States (US), China, the European Union (EU), Japan, Australia, and some selected EU Member States.
Key Findings
The United Kingdom’s capital markets have long stood as a global financial hub and as an engine for growth. As 2025 comes to an end, this report offers an assessment of the current shape of the UK’s capital markets, drawing on a range of key performance indicators that demonstrates the UK’s strengths and challenges.
Over the past three years, UK corporates have consistently raised a substantial share of their funding through public markets, notably due to record bond issuances, with levels of total market-based finance rivalling those of the United States. Yet, this does not show the complete picture. The UK’s IPO activity has come under continued pressure over the same period, with fewer (at times zero) new listings and a longer-term trend of delistings. Over the last 9 years, there has only been one year (2021) where the number of new listings has been greater than companies leaving public markets.
The report also looks at the critical role of risk capital in funding the next generation of UK companies. While the UK remains a leader in pre-IPO funding compared to many European peers, the gap with the US has widened, and the ability of small and medium-sized enterprises to access equity risk capital remains an important challenge to the UK economy. The rise of UK Unicorns and scale-ups illustrates the country’s entrepreneurial dynamism but also highlights the growing tendency for high-growth firms to remain private for longer, delaying the benefits of public market participation.
Household investment patterns continue to undergo a transformation. The decline in pension and annuity values, coupled with a shift away from bonds and toward cash holdings, reflects both the current macroeconomic climate in the UK and changing attitudes toward long-term savings.
Sustainability and innovation are at the heart of the UK Government’s Growth and Competitiveness Strategy for the financial sector. The ESG finance indicator reveals both the challenges and opportunities of green finance, as recent noticeable declines in ESG investment flows demonstrate. Meanwhile, the UK’s fintech sector continues to thrive, though its leadership is increasingly concentrated in traditional activities, with next-generation innovations such bond issuance through Distributed Ledger Technology (DLT) and Tokenisation are often led by international competitors.
Finally, the UK’s role as a global financial hub remains strong and world leading, accounting for 17% of the world’s financial services exports. However, this share has declined over the past decade, highlighting the need for continued adaptation and innovation to maintain the UK’s competitive edge.
This report is intended not only as a snapshot of where we stand today, but as a call to action for policymakers, market participants, and stakeholders across the financial system. By looking at the current conditions across several markets, we can support not only the sector's ongoing success and importantly its ability to address the objectives set forth by the Government and Regulators in support of UK growth.
