During a meeting with UK Chancellor John Healey, JPMorgan Chase’s CEO Jamie Dimon is anticipated to caution against raising taxes on banks in the upcoming October budget. Dimon is likely to argue that increasing levies could hinder investment and threaten jobs in the financial sector. This discussion occurs amidst rumors that the government is contemplating a windfall tax targeting both banks and oil companies in the budget presentation set for 28 October.
Currently, UK banks are subject to a 28% corporation tax rate, which is notably higher than the standard 25%. Additionally, they face a separate banking surcharge based on their UK balance sheets. Dimon has consistently opposed further tax hikes, expressing concerns about potential negative impacts on the financial industry. In a conversation in August, Dimon reportedly highlighted to Healey that higher taxes could influence employment, referencing job reductions in New York’s finance sector, which he partially attributed to the city’s tax situation.
Previously, Dimon, along with other banking executives, has lobbied against increased taxation before the UK government’s budget discussions last year. JPMorgan has committed to substantial investments in London, including a £3 billion headquarters in Canary Wharf. However, Dimon warned that such projects might be reconsidered if the UK implements policies perceived as unfriendly to banks.
The push for enhanced bank taxes is backed by groups like the Trades Union Congress and Positive Money, who argue that the additional revenue could alleviate rising household expenses. In contrast, the UK’s top four lenders—HSBC, NatWest, Barclays, and Lloyds Banking Group—have collectively amassed approximately £200 billion in pre-tax profits over the last five years.
Data from UK Finance indicates that British banks paid an estimated £43.3 billion in taxes during the financial year ending March 2025. This figure underscores the ongoing debate about how much more revenue the banking sector should be expected to contribute in the face of mounting economic pressures.