Barclays’ chief executive officer, C.S. 'Venkat' Venkatakrishnan, has cautioned the government against raising taxes on banks, highlighting the crucial role financial institutions play in the UK’s economic growth.

His comments come as speculation grows over potential new taxes on the sector, following recent government spending reviews and calls from senior ministers to increase the bank surcharge.

Speaking in the wake of Barclays’ latest financial results, Venkatakrishnan said, “I think growth is the important objective of the UK economy, and we want good quality growth, which is fuelled by the important sectors of the economy – banks are one of them.” He also identified pharmaceuticals and technology as other key sectors driving prosperity.

Venkat emphasised the significant contribution banks already make to the nation’s finances, stating that financial institutions are “among the biggest taxpayers in this country.” He argued that increasing taxes further would be at odds with the government’s ambitions for economic expansion.

“If growth is the primary objective for the UK ... higher taxation of businesses is not a path towards that growth. Banks are among the bigger taxpayers in the country,” he said.

The Barclays boss’s warning follows similar statements from other bank leaders, including those at Lloyds and NatWest, who have argued that raising taxes on lenders would not support efforts to enhance the economy.

The debate has intensified after Deputy Prime Minister Angela Rayner suggested raising the bank surcharge to five per cent in addition to corporation tax, a move that has faced strong opposition from the sector.

Barclays recently reported a 28 per cent rise in pre-tax profits to £2.5 billion in the second quarter of 2025, supported by its trading business and the completed takeover of Tesco Bank. The bank also announced a new £1 billion share buyback scheme and a 3p per share dividend, reflecting confidence in its ongoing transformation plan.

Venkat described the bank’s three-year transformation plan as “on track” to deliver “structurally higher and more stable returns.” He reiterated the importance of supporting all major sectors of the economy, saying, “Banks are one of them and not the only one. There are many other important sectors – biotech, pharma, technology itself – and we want all of these sectors to prosper. And in our prosperity and in our growth lies the growth of the country.”

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