CS Venkatakrishnan, the CEO of Barclays, has voiced concerns regarding the need for the UK government to manage public sector wage increases and avoid imposing further tax burdens on banks. As Chancellor Rachel Reeves prepares to announce the budget in November amid a fiscal deficit, Venkatakrishnan emphasized the importance of controlling government expenditure and addressing wage inflation in the economy.
He argued that while it is crucial to keep public sector wages in check, wage inflation is a broader issue affecting the entire UK economy. Recent data indicates that annual wage growth in the public sector is currently at 5.7%, compared to 4.8% in the private sector.
The Trades Union Congress (TUC) responded critically to Venkatakrishnan’s remarks, questioning the credibility of his call for wage restraint in light of his significant salary increase to £10.5 million last year. TUC General Secretary Paul Nowak stated that it is inappropriate for leaders like Venkatakrishnan, who have received substantial pay raises, to ask public sector workers to forgo wage increases. He suggested that wealthier individuals and corporations contribute more to support essential public services.
In addition to his commentary on wages, Venkatakrishnan asserted that the banking sector should not face additional taxation, noting that UK banks are already subjected to higher tax rates compared to their counterparts in other regions. He expressed concern that taxing banks further could impact their stability and growth potential.
The discussion around potential tax increases for banks comes amid growing pressures on the government to address the fiscal gap, especially as bank shares experienced a decline following discussions about a possible windfall tax on large lenders. Venkatakrishnan emphasized that the UK banking sector had already paid significant taxes and urged for careful consideration in the upcoming budget to foster economic growth.
Source: https://www.theguardian.com/business/2025/sep/12/barclays-boss-urges-uk-ministers-limit-public-sector-pay-rises