JP Morgan CEO warns UK Chancellor against bank windfall tax
The chief executive of the world’s largest bank has directly contacted the Chancellor, arguing that increased taxation could harm the City’s employment landscape and jeopardise major infrastructure projects.
Jamie Dimon, chief executive of JP Morgan, has urged UK Chancellor John Healey to refrain from imposing a windfall tax on banks’ profits in the upcoming budget. Speaking to Healey in a phone conversation, Dimon warned that higher levies could negatively impact jobs within the financial sector. He cited a decline in finance roles in New York, which he attributed to the city’s existing tax policies, as evidence of the potential consequences of aggressive fiscal measures.
Speculation has intensified that the government may consider a windfall tax on UK lenders to fund Andy Burnham’s cost-of-living agenda. Campaigners have estimated that such a move could raise £19bn, a figure that has drawn attention from groups such as Positive Money and the Trades Union Congress, which have called for increased levies on the banking sector.
Dimon has a longstanding history of criticising Britain’s bank tax surcharges, which were introduced following the 2008 financial crisis bailouts. UK lenders currently pay a 28% corporation tax rate, compared to the standard 25%, alongside a separate levy on their UK balance sheets. In July, Dimon warned that raising these taxes further could have “adverse consequences,” describing it as another negative factor for businesses to consider.
The warning comes amid significant financial activity within the sector. The UK’s four largest lenders—HSBC, NatWest, Barclays, and Lloyds—reported £29.2bn in profits over the first six months of the year. Of this amount, £13.7bn was pledged to investors through dividends and share buy-backs, a distribution that campaigners argue demonstrates the sector’s capacity to shoulder additional taxation.
Dimon’s comments also touch on JP Morgan’s substantial investment in the UK. The bank has plans to build a £3bn, 3m sq ft headquarters in London’s Canary Wharf, contingent on a positive business environment. In May, Dimon indicated that he could scrap the tower plans, which are intended to house more than half of the bank’s 23,000 UK workforce, if the political leadership became hostile to banks.
Despite the growing pressure, neither Burnham nor Healey has made specific comments regarding a bank tax. Dimon previously lobbied successfully against higher taxes in Rachel Reeves’ budget last year, suggesting that the current administration remains under scrutiny for its approach to financial sector taxation.
