Britain is to press ahead with plans to block certain companies from listing on the stock market on the grounds of national security.
A public consultation will be undertaken before the plans become enacted, which will be included within chancellor Rishi Sunak’s drive to make the UK a more attractive place for technology companies and SPACs to list.
"The UK's reputation for clean, transparent markets makes it an attractive global financial centre," said the Treasury in an email to Reuters.
“We're planning to bolster this by taking a targeted new power to block listings that pose a national security risk, and will launch a consultation to inform its design in the coming months."
Sunak has already proposed an overhaul to listing rules to encourage fast-growing companies by allowing different share classes and relaxing free float requirements.
The City of London has been under pressure from places such as Amsterdam and Singapore since Brexit, while the US has seen a boom in so-called special acquisition companies (SPACs), which are shell companies that list and then find something to acquire.
The new UK rules would be focused on areas considered strategically important such as technology, defence and national infrastructure, said the reports this morning.