Barclays chief executive C.S.
Venkatakrishnan has issued a direct warning against proposed windfall taxes on the banking sector, arguing that additional fiscal levies would stifle economic activity by reducing credit availability.
The bank’s top executive stated that for every £1 of capital held, the institution lends between £8 and £10 to businesses and households, implying that any erosion of capital through new taxes would have a multiplied negative effect on lending volumes.
The comments come as political pressure mounts for new revenue streams, with London Mayor Sadiq Khan among those advocating for increased taxes on banks operating in the capital.
Venkatakrishnan’s intervention highlights the growing friction between policymakers seeking to capture financial sector profits and industry leaders who argue that such measures undermine the core function of banks as intermediaries of economic growth.
This stance aligns with Barclays’ previous warnings to local authorities, where the bank argued that additional fiscal burdens would erode its competitive position and limit its ability to support the real economy.