Barclays CEO Warns Against Hiking Taxes for Banks in Budget

Strategic Insights -

As the UK's Chancellor prepares to outline her plans for the autumn budget, the boss of Barclays has spoken out against increasing taxes for banks, citing the negative impact it could have on economic growth. CS Venkatakrishnan, also known as Venkat, emphasized that banks are already significant taxpayers and a crucial sector for driving economic activity. His comments come as the bank reports a 23% rise in half-year profits, despite booking credit impairment charges of £1.1bn.

Key Takeaways:

  • Barclays' half-year profits jumped by 23% to £5.2 billion, with the bank attributing the rise to its takeover of Tesco Bank and a more uncertain economic outlook, especially in the US.
  • The bank's investment banking arm saw forecast-beating revenues in the second quarter, with income lifting 10% to £3.3 billion.
  • Barclays' Chief Executive, CS Venkatakrishnan, warned against increasing taxes for banks, stating that it would be inconsistent with the aim of boosting economic growth.
  • The bank plans to deliver structurally higher and more stable returns for its investors, and has committed to another £1 billion in share buybacks.
  • Barclay's has cut around £350m of costs out of the £500m in savings planned for this year.

Statistics:

  • 23%: The rise in Barclays' half-year profits.
  • £5.2 billion: The bank's half-year profits.
  • £1.1 billion: The credit impairment charges booked by the bank.
  • 10%: The increase in income in Barclays' investment banking arm in the second quarter.
  • £3.3 billion: The income in Barclays' investment banking arm in the second quarter.
  • £350m: The costs cut by Barclays out of the £500m in savings planned for the year.

Sources:

  • "Barclays CEO Warns Against Hiking Taxes for Banks in Budget" by HOLLY WILLIAMS, The boss of Barclays has become the latest to caution the chancellor against hiking taxes for banks in her autumn budget as she looks to bolster the public finances. Group chief executive CS Venkatakrishnan, also known as Venkat, said increasing taxes for banks - or other important sectors of the economy - was not consistent with aims to boost economic growth. He said banks were already "among the biggest taxpayers in this country" and an important sector to help drive economic activity, with growth "the primary objective for the UK". (Source: [The article is not attributed to a specific source but is a direct quote from the text])