JPMorgan Chase’s Chief Executive Officer, Jamie Dimon, is anticipated to caution UK Chancellor John Healey against raising taxes on banks during their upcoming meeting ahead of the government’s budget announcement in October. Dimon is likely to contend that increasing taxes could deter investment and threaten jobs in the financial sector. Their discussion occurs amid rumors that the government might introduce a windfall tax targeting banks and oil companies in the budget set for 28 October.
Currently, UK banks are subjected to a 28% corporation tax rate, which is higher than the standard rate of 25%, in addition to a separate banking surcharge that is calculated based on their UK balance sheets. Dimon has been vocal in the past about his opposition to further tax hikes, warning that such measures could negatively impact the banking industry. In a phone conversation with Healey in August, Dimon reportedly highlighted that higher taxes could influence employment levels, referencing the reduction of finance-sector jobs in New York—a situation he partially attributes to the city’s tax policies.
In prior budget discussions last year, Dimon and other bank executives actively opposed the idea of increased taxes. JPMorgan has made substantial investment pledges in London, including a £3 billion headquarters in Canary Wharf. However, Dimon has cautioned that these plans might be reconsidered if policies perceived as unfriendly to banks are implemented in the UK.
Advocacy for higher taxes on banks has been mounting from organizations such as the Trades Union Congress and Positive Money. These groups argue that additional tax revenues could be used to alleviate rising household costs. Meanwhile, the UK’s four major banks—HSBC, NatWest, Barclays, and Lloyds Banking Group—have collectively amassed around £200 billion in pre-tax profits over the last five years.
Data commissioned by UK Finance indicates that British banks collectively contributed an estimated £43.3 billion in taxes for the fiscal year ending March 2025. This figure underscores the intensifying debate around the extent to which the banking sector should contribute additional revenue.