The boss of Barclays has told Rachel Reeves to limit pay rises for public sector workers, amid growing concern over a rebound in inflation.

CS Venkatakrishnan, Barclays’ chief executive, urged the Chancellor to “curb expenditure at the government level” as he called for public sector wages to be suppressed.

Speaking to the Financial Times, Mr Venkatakrishnan said: “We need to find a way to curb wage inflation.”

The demand comes amid fears that further public sector pay rises risk driving up inflation, with the latest official figures revealing inflation rose to 3.8pc in the year to July. This marked its highest level since January 2024.

Pay has already been rising more sharply for workers in the public sector than people in the private sector.

Figures from the Office for National Statistics show pay for public sector workers increased by 5.7pc in the year ending in August, compared to 4.8pc in the private sector. Unions have been pressing for further pay increases for public sector workers.

Mr Venkatakrishnan called for a push to curb wage inflation as Rachel Reeves, the Chancellor, prepares for her November Budget. She is facing mounting pressure to cut spending and increase taxes.

Economists at Goldman Sachs this week said she was likely to implement “significant tax increases” in an attempt to plug a black hole in public finances.

It has sparked fears in the City that the Chancellor could put new levies on the banking industry’s profits.

The Barclays chief urged Ms Reeves to avoid imposing more taxes on banks.

He said: “London is a great global financial centre and the path to growth does not lie to taxing the sector even more.”

Banks have seen their share prices soar over the past year, as profits have been bolstered by higher interest rates.

Barclays generated £5.2bn in pre-tax profits in the first half of 2025 alone, in what marked a 23pc increase compared to the first half of 2024. It has fuelled a rally in Barclays’ share price, up 75pc over the past 12 months.

The profit boost also meant Mr Venkatakrishnan’s pay doubled this year to £10.5m.

Mr Venkatakrishnan has previously warned more taxes on banks could hinder the country’s economic development.

On Friday, he urged Ms Reeves to focus on growing the UK’s economy, adding: “What I hope and expect is that they will take this time to think through the difficult choices they have to make.

“No budget keeps everyone happy, but the object of it is to foster growth in the country.”

Mr Venkatakrishnan, who took over as Barclays chief executive in November 2021, has largely supported the Labour government, even as other business leaders have questioned the direction it has taken since entering office last July.

He said: “I have had the view from day one that this is a government that is pro business and particularly pro the financial industry.”

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