In the run-up to the Autumn Budget, Barclays' chief executive has urged the government to restrain pay increases for public sector employees and resist imposing additional taxes on banking institutions.
In an interview with the Financial Times, CS Venkatakrishnan stated "we need to find a way to curb wage inflation," whilst highlighting the importance of controlling government spending, particularly regarding public sector salaries, as reported by .
The Office for National Statistics revealed last month that public sector pay increases had exceeded those in the private sector.
Venkatakrishnan expressed concern about potential tax rises on British banks, questioning the FT: "º£½ÇÊÓƵ banks are taxed more than banks anywhere else, how much more are you going to squeeze this?"
He outlined that º£½ÇÊÓƵ banks face an effective tax rate of roughly 46 per cent in 2024, whilst their New York counterparts pay 28 per cent, and European Union lenders encounter rates between 29 and 39 per cent.
He declared: "London is a great global financial centre and the path to growth does not lie to taxing the sector even more."
The FTSE 100 bank revealed its first-half results in July, demonstrating a 28 per cent surge in pre-tax profit to £5.2bn.
Group income climbed to £7.2bn, marking a 14 per cent rise, whilst net interest income jumped 12 per cent to £3.1bn despite declining º£½ÇÊÓƵ interest rates.
Barclays boss urges growth focus
Venkatakrishnan has remained supportive of the º£½ÇÊÓƵ's Labour government, even whilst others have raised doubts about its growth strategy. He stated: "I have had the view from day one that this is a government that is pro-business and particularly pro the financial industry."
In April, he supported the ring-fencing regulations affecting British banks, despite fellow FTSE 100 leaders urging the Chancellor to scrap them.
He opposes her proposals to overhaul these rules, contending that they offer vital depositor safeguards and that the advantages outweigh the drawbacks.
Regarding the forthcoming Budget in November, he expressed hope that the Chancellor will utilise this period to thoughtfully weigh the challenging decisions that lie ahead.
"No Budget keeps everyone happy, but the object of it is to foster growth in the country," he concluded.
