NatWest boss urges Burnham to show some ‘ambition’ to turbocharge economy after Budget
NatWest chief executive Paul Thwaite urged Labour to show greater ambition in its growth strategy after the Budget, arguing that economic momentum needs long-term stability on tax, spending, planning and regulation. He said next year’s Spending Review and Prime Minister Andy Burnham’s ten-year renewal plan would be important signals of the UK’s long-term direction.
Thwaite said the Budget’s temporary increase in the bank surcharge to 6 per cent, expected to raise £1.5 billion over 15 months, provided welcome clarity; bank shares rose after a lower-than-expected tax increase. NatWest reported third-quarter operating pre-tax profit of £2.2 billion, up about 2 per cent year on year, and net interest income of £3.6 billion, up nearly 9 per cent. It also reported £420 million in cost savings, while about 1,000 roles were cut during the quarter.
In short
- NatWest’s chief called for a more ambitious, stable growth strategy.
- The bank’s third-quarter profit rose to £2.2 billion.
- Its temporary bank tax increase is expected to raise £1.5 billion.
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The strongest fair case each way — we don't pick a winner.
The case for
A stronger, longer-term growth strategy could help businesses and investors plan with confidence, encourage investment and raise productivity. Clear, stable decisions on tax, spending, planning and regulation would give that ambition credibility, while the Budget’s defined, temporary bank surcharge may offer more certainty than an open-ended change.
The case against
A focus on rapid growth and business certainty should not override other priorities, such as funding public services or ensuring that profitable banks contribute fairly to public finances. Long-term plans also need room to respond to changing economic conditions; commitments to stability can become constraints if they prevent governments from adjusting taxes, spending or regulation when circumstances demand it.
Explained simply
NatWest is one of the UK’s largest banks, and Paul Thwaite is its chief executive. Banks are affected by government decisions on tax and regulation, while their lending can influence how easily households and businesses borrow money.
The UK government sets taxes and public spending, and planning rules affect how quickly homes and infrastructure can be built. A Spending Review sets out government departments’ budgets; a long-term renewal plan is intended to describe priorities over a longer period. Stable, predictable policies can shape decisions by businesses about investment and hiring.
Economic growth means an increase in the goods and services produced in the country. It matters to jobs, wages and public finances, but can be influenced by many factors, including investment, productivity and global conditions.