In anticipation of the UK government’s forthcoming budget announcement on October 28, JPMorgan Chase CEO Jamie Dimon plans to advise Chancellor John Healey against imposing additional taxes on financial institutions. Dimon is expected to convey concerns that increasing levies could dissuade investment and jeopardize jobs within the financial sector. This meeting is set against a backdrop of speculation that the government might introduce a windfall tax targeting banks and oil companies.
Currently, UK banks are subjected to a corporation tax rate of 28%, which is higher than the standard 25%, along with an additional surcharge specifically based on their UK balance sheets. Dimon has consistently voiced opposition to further tax hikes, cautioning that such measures could negatively impact the banking industry. In a telephone conversation with Healey in August, Dimon reportedly emphasized that heightened taxes could lead to job losses, citing the decline of finance-sector roles in New York as an example, which he partly attributed to the city’s tax policies.
JPMorgan, along with other banking executives, has previously campaigned against increased taxes before the UK’s budget last year. The bank has made notable investments in London, including a planned £3 billion headquarters in Canary Wharf. However, Dimon has hinted that such projects might be reconsidered if the UK implements what he perceives as anti-banking policies. Calls for higher bank taxes have been fueled by organizations like the Trades Union Congress and Positive Money, which argue that the additional revenue could alleviate the rising cost of living for households.
The debate over bank taxation is underscored by the significant pre-tax profits generated by the UK’s major lenders—HSBC, NatWest, Barclays, and Lloyds Banking Group—which have collectively amassed around £200 billion over the past five years. Meanwhile, UK Finance-commissioned figures indicate that British banks collectively paid an estimated £43.3 billion in taxes for the financial year ending March 2025. This substantial tax contribution has intensified discussions on the extent of additional revenue the banking sector should be responsible for contributing.