Barclays CEO Warns UK Government Against Public Sector Pay Rises

Barclays CEO CS Venkatakrishnan has called on UK Chancellor Rachel Reeves to limit pay rises for public sector workers to curb wage inflation amid concerns over rising inflation and a challenging fiscal outlook. He emphasized the need to restrain government expenditure, highlighting that public sector wage growth remains higher than the private sector, with annual increases of 5.7% versus 4.8%, respectively. Venkatakrishnan also urged the government to avoid imposing further taxes on banks, noting that UK banks already face some of the highest tax rates globally and stressing the importance of maintaining London's status as a global financial center. His comments have drawn criticism from unions and the TUC, who accused him of hypocrisy due to his own substantial pay rise to over £10 million last year. The issue comes as Chancellor Reeves prepares her autumn budget amid pressure to raise revenues without increasing income tax, national insurance, or VAT, potentially targeting corporate sectors instead. The debate underscores tensions between fiscal policy goals, public sector pay demands, and the banking industry's role in the UK economy.