Jamie Dimon, CEO of JPMorgan Chase, is set to caution UK Chancellor John Healey against imposing higher taxes on banks in an upcoming meeting, which takes place just before the government’s budget announcement in October. Dimon’s main argument is that increasing levies could deter investment and endanger jobs in the financial sector. The meeting occurs amidst rumors that the government might introduce a windfall tax targeting banks and oil companies in its budget slated for 28 October.
Currently, UK banks are subjected to a corporation tax rate of 28%, which is higher than the standard 25%, in addition to a separate banking surcharge that is calculated based on their UK balance sheets. Dimon has been a vocal critic of any further tax hikes, cautioning that such measures could negatively impact the banking industry. In a telephone conversation in August, Dimon reportedly expressed to Healey that higher taxes might lead to job losses, drawing parallels with the job decline in New York’s finance sector, which he partly attributed to the city’s tax policies.
Previously, Dimon and other banking leaders campaigned against tax increases ahead of last year’s UK government budget. JPMorgan has made substantial investment pledges in London, including a £3 billion headquarters project in Canary Wharf. However, Dimon has signaled that such projects could be reevaluated if the UK were to implement policies perceived as unfriendly to banks.
There has been mounting pressure to raise bank taxes from organizations like the Trades Union Congress and Positive Money, which argue that increased revenues could help mitigate the rising cost of living for households. Meanwhile, the UK’s top four banks—HSBC, NatWest, Barclays, and Lloyds Banking Group—have collectively amassed around £200 billion in pre-tax profits over the last five years.
Figures from UK Finance indicate that British banks paid an estimated £43.3 billion in taxes in the fiscal year ending March 2025. This underscores the ongoing debate over the appropriate level of financial contributions the banking sector should make, as discussions about increasing their tax burden continue to spark contention.