Key Takeaways
- Barclays and Citi leaders cautioned the British government against further tax hikes on the financial sector.
- J.P. Morgan claimed the £150 billion wave of U.S. investment was a strong signal of confidence in the U.K.
- U.S. tech giants, including Microsoft and Google, recently announced record investments in Britain.
Senior figures from Britain’s banking sector, including Barclays, have warned Chancellor Rachel Reeves against raising tax further on the industry.
The comments came as Wall Street giant J.P. Morgan welcomed a new £150 billion wave of U.S. investment in the U.K., calling it a “vote of confidence” in London.
Barclays and City Call for Tax Stability
Speaking to CNBC on Thursday, Barclays’ chief executive CS Venkatakrishnan, widely known as Venkat, argued that overtaxing the sector would undermine its global competitiveness.
“Competition is an important part of growth, which is why actually milking the financial sector is not good, because it stifles investment,” he said.
“It stifles competition, stifles growth. We are sitting in the financial heart of London. London is one of the two great financial centers of the world. You need to encourage it to grow, not tax it out of existence.”
Meanwhile, Tiina Lee, Citi’s U.K. head, echoed the warning, noting that financial markets were becoming “impatient” for clearer policy direction.
“That is the key message we continue to deliver to the government,” she said, adding that Citi’s clients were pressing for a competitive and predictable tax framework.
In contrast, J.P. Morgan offered a more optimistic outlook.
Conor Hillery, the bank’s deputy chief executive and head of investment banking for EMEA, said London remained “the premier capital market in Europe.”
He pointed to a resurgence in deal activity as evidence of renewed momentum:
“In London in particular, we have seen over the last number of months, a growing number of companies looking to list in the U.K.,” he said.
The recent announcement of £150 billion in planned U.S. investment, Hillery added, was “a vote of confidence in the U.K.”
U.S. Tech Giants Invest in the U.K.
U.S. tech firms boosted confidence with major investment pledges last week, timed to match President Donald Trump’s state visit and the signing of a “Tech Prosperity Deal” between Washington and Westminster.
At the forefront, Microsoft pledged $30 billion (£23.1 billion) over four years, its largest-ever investment in the U.K.
The company said half of the money would go toward new data centers and a supercomputer with 23,000 Nvidia chips.
Nvidia, the supplier of those processors, described the project as “the largest AI infrastructure rollout in the country’s history.”
Other announcements included:
Crypto Left in the Cold
While AI dominated the agenda, the U.K.’s crypto sector received no high-profile commitments.
Industry groups had lobbied ministers to include digital assets in the transatlantic discussions, but no agreements have been reached.
According to the Financial Times, British officials still hope to secure closer alignment with Washington, though there is little indication that it is a top priority for Keir Starmer’s government.
Although the White House continues to include crypto in its broader growth vision, Westminster appears more focused on positioning Britain as a global hub for AI.
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Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
