Analysts Warn That Coutts’ Plans To Move £2 Billion From UK Funds Into Overseas Investments Are Part Of A ‘Vicious Circle’ Causing London-Listed Firms To Lose Value

Royal bank Coutts has been accused of ‘abandoning’ Britain as it plans to shift billions of pounds of clients’ cash out of the UK.

In a blow to the City, the 332-year-old lender, where King Charles is a client, will transfer £2 billion from British funds into overseas investments.

Analysts said Coutts’ decision to join a ‘foreign exodus’ is part of a ‘vicious circle’ causing London-listed firms to lose value, making them vulnerable to takeovers.

City insiders blasted the timing as ‘ironic’ as the Government will encourage people to invest in British stocks when it sells its stake in Coutts’ owner NatWest this summer.

This is the most recent scandal to rock Coutts, which was rocked last year by a dispute over the cancellation of Nigel Farage’s account, partly because of the former leader of UKIP’s political beliefs.

Founded in London in 1692, Coutts is the eighth-oldest bank in the world. It is an exclusive private lender.

The wealthiest people in the UK, including members of the Royal Family and celebrities, entrust their fortunes to it.

Experts today slammed its decision to snub Britain’s listed companies amid concerns over the future of London’s stock market.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said ‘abandoning the UK stock market’ is a ‘highly questionable decision.’

She said: ‘The time is ripe to back British-listed businesses rather than join a foreign exodus, given the value which has the potential to be unlocked.’

Firms are increasingly choosing New York over London because British equities are perceived as cheap when compared to their American counterparts.

Betting giant Flutter, the FTSE 100 owner of Paddy Power, this week became the latest to vote to quit the City in favour of Wall Street.

In search of a deal, overseas purchasers are also eyeing London’s blue-chip businesses.

In recent weeks, footsie companies Anglo-American and Royal Mail have emerged as acquisition prospects.

According to data from Calastone, outflows from UK equity funds hit £8 billion in 2023—making the £2 billion planned withdrawal by Coutts a huge increase in the short term.

‘This will inevitably put further selling pressure on the UK market at a time when valuations are already depressed,’ Charles Hall, head of research at investment bank Peel Hunt, said.

The changeover is scheduled to be finished in July, and Coutts will begin making the necessary adjustments to its investment funds at the end of the following month.

Instead of choosing to make Britain the global hub for investments, they decided to increase taxes.

We’ve become an anti-business economy that over-taxes small and medium-sized businesses and doesn’t encourage people to be entrepreneurial, and it’s made how they treat small businesses in this country—there’s zero incentive to run one anymore.

As bloodsucking vultures, the Chancellor and the HMRC just care about snatching up as much money as they can without considering long-term consequences.

The country’s problems are not well represented by things like sewage levels, food banks, treatment wait times, and public funds going into the pockets of the ultra-wealthy, but it’s all deliberate to bring Great Britain to its knees.

Perhaps our government should try being a bit more likeable because being a Pariah is not going well, but it’s all self-inflicted because our current government take orders from big donors and political globalists with payment in kind.

Britain is a bad place to invest now because taxes are much too high.