JPMorgan Chase CEO Jamie Dimon is poised to caution UK Chancellor John Healey about the potential ramifications of raising taxes on banks, ahead of the government’s budget announcement in October. Dimon plans to argue that increasing levies could deter investment and threaten jobs within the financial sector. This meeting takes place amid growing speculation that the government is considering imposing a windfall tax on banks and oil companies in the budget set for October 28.
Currently, UK banks are taxed at a corporation rate of 28%, slightly higher than the standard 25%, in addition to a banking surcharge based on their UK balance sheets. Dimon has been vocal against further tax hikes, warning that such moves could negatively impact the sector. In a phone conversation in August, Dimon reportedly expressed to Healey that higher taxes might influence employment levels, drawing parallels to the decline in finance-sector jobs in New York, which he partly attributed to the city’s tax environment.
Dimon, alongside other banking leaders, has previously lobbied against tax increases prior to last year’s UK government budget. JPMorgan has made significant investment pledges in London, including a £3 billion headquarters project at Canary Wharf. However, Dimon has cautioned that if the UK adopts policies perceived as unfriendly to banks, such projects could be reconsidered.
Advocates for increased bank taxes, including organizations like the Trades Union Congress and Positive Money, argue that additional revenue could be used to address rising household expenses. Meanwhile, the UK’s four largest banks—HSBC, NatWest, Barclays, and Lloyds Banking Group—have collectively generated about £200 billion in pre-tax profits over the past five years. According to data from UK Finance, British banks paid approximately £43.3 billion in taxes for the financial year ending March 2025, underscoring the ongoing debate about the sector’s fiscal contributions.