The boss of Barclays has been accused of making “the most tone-deaf comment of the year” as he urges ministers to get a grip of state worker pay rises
The boss of banking giant Barclays has been accused of “rank hypocrisy” for urging the government to limit wage rises for hard-working public sector workers – despite his own pay and perks more than doubling to £10.5million last year.
The TUC branded comments by fat cat CS Venkatakrishnan “the most tone-deaf of the year”. Mr Venkatakrishnan, also known as Venkat, reportedly told the Financial Times: “We need to curb expenditure at the government level”, adding that ministers should bear down on rising public sector pay.
“We need a way to curb wage inflation,” he said. Yet Barclays’ annual report shows his own pay and perks inflation soared 127% last year, with his total package going from £4.6million to more than £10.5million.
The payout included more than £7million in bonuses, on top of a £3million annual salary. Barclays said earlier this year that it wanted to hand its CEO a potential huge increase, arguing he isn’t paid enough at the moment.
TUC general secretary Paul Nowak said: “The prize for the most tone-deaf comment of the year goes to CS Venkatakrishnan.
“You couldn’t make it up. For him to call on nurses, teachers and paramedics to tighten their belts when he’s just pocketed a bumper pay rise is frankly astonishing. He seems to have conveniently forgotten we’re in the middle of a recruitment and retention crisis in our public services. That’s bad for the country and its bad for businesses.
“Companies like Barclays rely on staff being able to see a GP, send their kids to school and get to work safely. Public services aren’t a luxury they’re the backbone of a functioning economy. And they are only as strong as the staff who work in them.
“Instead of talking down to public sector workers those with the broader shoulders – including the mega wealthy like CS Venkatakrishnan, banks and gambling companies – should contribute their fair share to fund our schools, hospitals and local authorities.”
Rachel Harrison, GMB National Secretary, said: “This is rank hypocrisy of the very worst kind. Public sector workers – from NHS staff, to school workers, to the people who keep our streets clean and our towns and cities running – are utterly essential to the fabric of our country. For a fat cat CEO who’s trousered millions to try and stamp down their pay is truly nauseating.”
Luke Hildyard, director of the High Pay Centre, said: “Someone happily accepting a pay package of £10.5million doesn’t really have the moral authority to tell nurses and teachers and local government workers they shouldn’t get a pay rise. It would be a lot easier to fund decent wages for public sector workers if the wealth of multi millionaire was taxed more effectively so if the Barclays CEO is concerned about the sustainability of public finances, he would look a lot less crass and hypocritical if he used his position to argue for a wealth tax on the super rich instead.”
Mr Venkatakrishnan was appointed as Barclays’ group chief executive in November 2021, since when he had more than £20million in pay, bonuses and benefits.
The FT says, in its interview, that he urged ministers to bear down on “public sector” wages. He also reportedly warned wage inflation was an issue across the UK economy.
Figures from the Office for National Statistics show average annual wage growth was 5.7% in the public sector between April and June, above the 4.8% for the private sector. But it came after private sector pay has vastly outstripped the public sector for much of the time since early 2021.
In the interview, Mr Venkatakrishnan also warned Chancellor Rachel Reeves against hitting banks with tax hikes in the Budget, weeks after Barclays revealed profits surged 23% to £5.2billion in the first six months of this year, the equivalent of £329 a second.
He said: “UK banks are taxed more than banks anywhere else. How much more are you going to squeeze this?” He added that he hoped it was an “extremely low probability” that a tax rise would be announced in November’s Budget.
Comparing tax rates in the UK and other financial centres, he said: “London is a great global financial centre and the path to growth does not lie to taxing the sector even more.”
Some campaigners claims a windfall tax on Britain’s Big Four banks could raise more than £11billion a year for the Treasury.
Former Tory Chancellor Jeremy Hunt cut a bank surcharge in his 2022 autumn statement, from 8% to 3%. But think-tank Positive Money is calling for a separate surcharge of 38%. It claims it would bring in £11.3billion from the Big Four banks this year, based on results for the first half of 2025.