Jamie Dimon, CEO of America’s biggest bank JPMorgan Chase has cautioned UK chancellor John Healey against creating a more hostile tax environment for banks. According to a report by Financial Times, in a recent call, Dimon said that higher taxes often drive jobs elsewhere, citing a decline in finance roles in New York that he attributed partly to the city’s tax burden. One person familiar with the exchange said Dimon made clear that a windfall levy on bank profits, or broader tax increases targeting wealth, would not be welcomed by the industry. Another person familiar with the call said Dimon told Healey that the only real path to solving the UK’s economic challenges was through growth, and that growth could only come through good policy.
Jamie Dimon’s pattern of lobbying against bank taxes
The comments made by Dimon come as the financial services sector prepares for a major pre‑Budget lobbying campaign. Banks are seen as a tempting target for Healey, given bumper profits and union calls for higher taxes to fund household energy bill relief. Dimon made clear that a windfall levy on bank profits or wider wealth taxes would be unwelcome.Dimon was among the bank chiefs who successfully lobbied against higher taxes ahead of last year’s Budget, holding talks with then chancellor Rachel Reeves as JPMorgan weighed plans for a new £3bn London base at Canary Wharf. A person close to those negotiations said Dimon “always majors on the impact of bank taxes” and will want assurances that a Burnham government supports the new HQ.
Public warning to UK Prime Minister Andy Burnham
Dimon’s private comments follow a public warning last month to Prime Minister Andy Burnham, when he said higher bank taxes could have “adverse consequences.” He noted that JPMorgan shareholders had already paid $5bn in extra taxes under the UK’s post‑2008 regime.One person close to Dimon’s earlier negotiations with Reeves said he consistently emphasizes the impact of bank taxes and would likely want reassurance that a Burnham-led government would continue backing the new Canary Wharf headquarters. Asked whether Dimon had previously threatened to cancel the planned office over higher bank taxes during talks with Reeves, the person said “threatened” was too strong a characterization, though they noted that any business naturally weighs the fiscal environment before finalizing investment decisions. JPMorgan had revealed its plans for a new building at its Riverside development in Canary Wharf the day after Reeves’ Budget, noting at the time that the project would depend on a continuing positive business environment in the UK.
Why banks could be a target
Rules introduced after the 2008 financial crisis already require UK banks to pay additional taxes beyond standard corporation tax, including a levy on their balance sheets and a surcharge on profits. But with bank profits having surged in recent years due to higher interest rates, there is concern within the City that lenders could become a target for an even tougher tax regime. The Trades Union Congress has specifically urged Healey to raise the surcharge banks pay, currently set at 3% above the 25% corporation tax rate, to help fund cost-of-living support for households.
Other bank leaders weigh in
Dimon isn’t alone in pushing back. Santander chief Ana Botín told the FT in June that the UK’s bank tax regime made no economic sense, suggesting that if policymakers were looking for sectors earning outsized returns, there were other places to look first. Separately, senior officials from Sir Keir Starmer’s former Labour administration have urged Healey this week not to derail the UK’s economic recovery through higher business taxes or a significant expansion of borrowing. Miles Celic, chief executive of lobby group TheCityUK, said ministers and officials need to treat the private sector as a partner in attracting investment and boosting growth, working with industry rather than imposing on it.
