JPMorgan Chase CEO Jamie Dimon is set to caution UK Chancellor John Healey against imposing higher taxes on banks during their upcoming meeting ahead of the government’s budget announcement on October 28. Dimon is expected to emphasize that increased tax burdens could deter investment and jeopardize jobs in the financial sector. This discussion occurs amidst speculation that the UK government is considering implementing a windfall tax targeting banks and oil companies in the upcoming budget.
Currently, banks in the UK are subjected to a 28% corporation tax rate, which is slightly higher than the standard 25% rate, alongside a separate surcharge based on their balance sheets within the UK. Dimon has consistently been vocal about his opposition to further tax hikes, warning that such measures could have negative implications for the banking industry. In a phone call with Healey in August, Dimon reportedly highlighted the potential impact on employment, citing the decline in finance-sector jobs in New York, which he partly attributed to the city’s tax policies.
Previously, Dimon and other banking leaders have campaigned against higher taxes, especially before the UK government’s budget decisions last year. JPMorgan has also committed to significant investments in London, including a £3 billion headquarters in Canary Wharf. However, Dimon has cautioned that such investments might be reconsidered if the UK government adopts policies perceived as unfriendly to banks.
The push for increased taxation on banks has been supported by groups like the Trades Union Congress and Positive Money, who argue that additional revenue could help alleviate rising household costs. Meanwhile, the UK’s top four banks—HSBC, NatWest, Barclays, and Lloyds Banking Group—have collectively amassed approximately £200 billion in pre-tax profits over the past five years. According to UK Finance, British banks collectively contributed an estimated £43.3 billion in taxes during the fiscal year ending March 2025, underscoring the ongoing debate about the financial sector’s contribution to public revenue.