Barclays’ chief executive said on Friday that proposed additional taxes on banks set to be announced in next week’s Budget would be manageable and reiterated the lender’s backing for the chancellor.
Speaking to reporters, the Barclays CEO said: “I deeply respect the responsibility that the chancellor has and he has our full support and backing,” and indicated that any levy on banks in the Budget would be “bearable.” The comments came amid expectations that Chancellor Healey will raise the surcharge on bank profits as part of measures to bolster public finances.
When asked whether banks were making excessive profits — a potential justification for increasing the surcharge — Chancellor Healey was quoted saying: “You know the banks are the engine of investment in this country. The banks are doing well at the moment and that is good to see.” His remarks underline the government’s view of banks’ role in financing investment even as it considers higher taxation of the sector.
The chancellor’s anticipated move on the bank surcharge has drawn attention from the City and corporate leaders as ministers finalise fiscal plans ahead of next week’s Budget. Barclays’ public show of support comes at a sensitive moment for relations between the finance industry and Westminster, where business leaders are weighing the economic impact of higher levies against the political imperative to raise revenue.
Separately, the Office for National Statistics released figures on the gender pay gap for full‑time employees, reporting a continued decline. The gap fell to 6.8% in April 2026 from 7.2% in April 2025, down from 9.4% a decade ago and 16.4% 25 years ago, reflecting a long‑term narrowing in differences in average hourly pay between men and women working full time.
Officials and market participants will be watching next week’s Budget closely for final decisions on the bank surcharge and other measures, which could affect the profitability of major lenders and the broader trajectory of UK fiscal policy.