As the UK government prepares its budget for October, JPMorgan Chase CEO Jamie Dimon is anticipated to advise Chancellor John Healey against imposing higher taxes on banks. Dimon is expected to argue that increased financial levies could deter investment and threaten jobs within the financial sector. This meeting occurs amid discussions that the government may introduce a windfall tax targeting banks and oil companies in the upcoming 28 October budget.
Currently, banks in the UK are subject to a 28% corporation tax rate, which is higher than the standard 25%, in addition to a specific surcharge calculated from their UK balance sheets. Dimon has consistently voiced his opposition to further tax hikes, cautioning that such measures could negatively impact the banking industry. In August, during a phone call with Healey, he reportedly highlighted the potential for job losses, drawing a parallel to the declining number of finance-sector jobs in New York, which he partially attributes to the city’s tax policies.
In the past, Dimon, alongside other banking leaders, has lobbied against increased taxes before the annual UK budget announcement. JPMorgan has committed to significant investments in London, including plans for a £3 billion headquarters in Canary Wharf. However, Dimon has indicated that these plans could be reconsidered if the UK government adopts policies perceived as unfriendly to banks.
Advocacy for higher bank taxes has come from organizations such as the Trades Union Congress and Positive Money, which argue that additional tax revenues could alleviate rising household expenses. Meanwhile, the UK’s top four banks—HSBC, NatWest, Barclays, and Lloyds Banking Group—have collectively generated approximately £200 billion in pre-tax profits over the past five years, fueling the debate on whether the sector should contribute more in taxes.
According to data provided by UK Finance, British banks paid an estimated £43.3 billion in taxes in the financial year ending March 2025. This figure underscores the ongoing discussion about the banking sector’s fiscal contributions and whether they should be increased to meet the country’s economic challenges.