Barclays, Citi Urge Tax Stability as JPMorgan Calls US Investment a ‘Vote of Confidence’ in London

Barclays and Citi have urged tax stability in the UK as J.P. Morgan hailed new US investments in Britain as a vote of confidence. | Credit: Getty Images.

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.

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.”

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Other announcements included:

Google’s £5 billion commitment to AI research and cloud infrastructure CoreWeave’s £1.5 billion plan to expand capacity BlackRock and Digital Gravity Partners’ £500 million partnership to upgrade data centers

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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