Barclays chief executive CS Venkatakrishnan has publicly supported the government's plan to raise taxes on banks, reversing the sector's longstanding resistance to higher levies. When asked whether Barclays might move assets or investment to the United States in response to increased taxation, Venkatakrishnan instead offered full backing to the chancellor. He said he recognised the chancellor and government had been entrusted with important responsibilities by the public and had to balance many considerations. Venkatakrishnan added that the chancellor's long-term goal of driving growth was the same as Barclays' objective.
The Barclays boss downplayed the financial impact of higher taxes on the bank, noting that it already makes roughly half its money outside the UK. He framed the issue as one of proportion and market signalling rather than a significant financial burden. Despite this, Venkatakrishnan stated that Barclays offered the chancellor its full support and backing on the tax measure.
Bank leaders have been campaigning hard against tax rises since narrowly avoiding higher levies during last year's budget. The resistance has continued at the highest levels, with JP Morgan chief executive Jamie Dimon saying earlier this year that he could abandon plans for a new £3 billion London headquarters if the UK government turned hostile to banks. That tower development, which would house more than half of JP Morgan's 23,000 UK staff, was announced just days after former Labour chancellor Rachel Reeves chose not to impose further tax rises on the banking sector during her 2025 autumn budget.
Venkatakrishnan's statement marks a significant shift in tone from the banking industry's previous opposition. His acceptance of the tax increase signals that at least one major bank is willing to accept the government's fiscal priorities ahead of what is expected to be a headline measure in the upcoming budget.