Rachel Reeves calls in UK bank bosses for crunch talks amid Iran war economic fallout | Politics | News
Rachel Reeves has called bosses at Britain’s biggest banks for urgent talks as the Chancellor grapples with the deepening economic fallout from the war in Iran.
Leading executives from Barclays, HSBC, Lloyds Banking Group, NatWest Group and Santander UK have been asked to attend a meeting with him on Wednesday. Sky News. The largest construction cooperative in the country was also invited. Sources told the press that Barclays’ retail banking chief Vim Maru said; Paul Thwaite, NatWest CEO; Charlie Nunn, managing director of Lloyds; Mahesh Aditya, new CEO of Santander UK; Nationwide CEO Debbie Crosbie is also expected to attend. It is not yet clear whether HSBC will be represented by its CEO, Georges Elhedery.
It is not yet clear whether he will be represented by HSBC’s CEO Georges Elhedery or another senior executive.
According to the International Monetary Fund (IMF), the UK will be hit hardest among developed economies by the energy shock caused by the Iran war.
Many major British banks are expected to increase loan loss provisions in their first-quarter results after cutting internal forecasts for economic growth in 2026, sources said.
One of the issues likely to be raised by the Chancellor on Wednesday is banks’ ongoing commitment to support customers affected by inflationary pressures linked to the Middle East crisis.
Bank capital reforms and possible changes to the protection regime introduced after the 2008 financial crisis are also expected to be discussed.
The UK is also forecast to record the joint highest inflation in the G7 with the US, at 3.2% this year and 2.4% in 2026, before catching up with Italy in 2027.
Inflation in the UK is expected to rise “temporarily” to around 4% this year, then gradually return to the Bank of England’s 2% target by the end of 2027, the IMF said. This is expected as high energy costs decline and a weakening labor market slows wage growth.
