Barclays boss warns Reeves: don't tax growth 'out of existence'

"Barclays chief executive CS Venkatakrishnan has issued a stark warning to Chancellor Rachel Reeves, urging her not to introduce new levies that would "stifle competition and growth" in Britain's financial sector. Speaking in an interview with CNBC, Venkatakrishnan said taxing banks and investors more heavily risked "taxing growth out of existence," just weeks before Reeves unveils her first Budget. His remarks come amid speculation that the Chancellor could raise as much as £50 billion in extra taxes to plug a hole in the public finances."

"Venkatakrishnan pushed back, warning that a banking tax raid would ultimately mean fewer jobs and less lending to British businesses. "You need to encourage [growth] to expand, not tax it out of existence," he said. Shares in major lenders including Lloyds, HSBC and NatWest fell earlier this year after news of the IPPR's proposal, wiping billions from the sector's market value. The think tank claimed the Treasury was losing £22 billion annually as the Bank of England offloaded bonds at a loss."

Barclays chief executive CS Venkatakrishnan urged Chancellor Rachel Reeves not to introduce new levies that would stifle competition and growth in Britain's financial sector. He said taxing banks and investors more heavily risks taxing growth out of existence just weeks before the Budget. Think tanks have proposed a windfall levy, citing benefits lenders received from Bank of England interventions and suggesting up to £50 billion in extra taxes. Venkatakrishnan warned such measures would lead to fewer jobs and less lending to British businesses. Shares in major lenders fell after the proposal, and other bank chiefs have voiced similar competitiveness concerns.

Read at Business Matters