JPMorgan Chase’s chief executive, Jamie Dimon, is set to caution UK Chancellor John Healey against imposing higher taxes on banks in their upcoming meeting, which is scheduled before the government unveils its October budget. Dimon is likely to express concerns that increasing levies could deter investment and threaten jobs within the financial sector. This meeting takes place amid ongoing speculation that the government might introduce a windfall tax on both banks and oil companies in its budget announcement on October 28.
Currently, UK banks are subject to a 28% corporation tax rate, a figure that is above the standard 25%, in addition to a specific banking surcharge calculated based on their UK balance sheets. Dimon has been a vocal opponent of further tax hikes, cautioning that additional burdens could negatively impact the banking sector. In a phone call with Healey in August, Dimon reportedly pointed out that higher taxes could have repercussions on employment, citing a decline in finance jobs in New York, which he attributes partially to the city’s taxing climate.
In the past, Dimon and other banking leaders have actively lobbied against tax increases before the UK government’s previous budget announcements. JPMorgan has demonstrated a strong commitment to investing in London, notably through its plan to establish a £3 billion headquarters in Canary Wharf. However, Dimon has hinted that such projects might be re-evaluated if the UK adopts what he perceives as bank-unfriendly policies.
Advocacy for raising bank taxes has been pushed by organizations like the Trades Union Congress and Positive Money, which believe that the additional revenue could help mitigate rising household expenses. Meanwhile, over the last five years, the UK’s top four lenders—HSBC, NatWest, Barclays, and Lloyds Banking Group—have accumulated approximately £200 billion in pre-tax profits. This financial backdrop fuels the debate on the extent of the contribution the banking sector should make to public coffers.
According to data gathered by UK Finance, British banks collectively paid an estimated £43.3 billion in taxes for the fiscal year ending March 2025. This substantial figure underscores the ongoing discussion about whether the banking industry should be contributing even more to the nation’s finances, especially in light of current economic pressures.