The Chancellor has confirmed a three-year stamp duty holiday on shares bought in new UK flotations in a move showing Britain is “backing its markets”, according to the London Stock Exchange.

In a raft of measures to boost investment in UK shares, Rachel Reeves said that from November 27, investors will be exempted from paying the tax – currently at a rate of 0.5% – on shares in companies that are newly-listed in the UK for the first three years following its initial public offering (IPO).

But the Chancellor also revealed an unexpected increase in dividend tax, rising by 2% for basic and higher rate taxpayers next year, which experts warned “undermines the drive to increase investing in Britain”.

On the IPO shares stamp duty holiday, the Government said it was looking to “ensure

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