JPMorgan Chase CEO Jamie Dimon is set to caution UK Chancellor John Healey against the imposition of higher taxes on banks during their upcoming meeting, which precedes the government’s October budget announcement. Dimon is likely to assert that increasing levies could deter investment and threaten jobs within the financial sector. This discussion arises amid rumors that the government may introduce a windfall tax targeting banks and oil companies in the budget scheduled for October 28.
Currently, UK banks are subject to a 28% corporation tax rate, exceeding the standard 25%, in addition to a banking surcharge based on their UK balance sheets. Dimon has consistently opposed further tax hikes, warning of the potential negative impact on the banking sector. In a telephone conversation with Healey in August, Dimon allegedly expressed concerns that higher taxes could influence employment, citing a reduction in finance-sector jobs in New York, which he partially attributed to the city’s tax policies.
Previously, Dimon and other banking leaders have campaigned against increased taxes before the UK government’s budget announcements. JPMorgan has committed substantial investments in London, including plans for a new £3 billion headquarters tower in Canary Wharf. However, Dimon has cautioned that such projects might be reconsidered if the UK adopts policies perceived as unfavorable to banks.
The push for increased bank taxes has come from organizations like the Trades Union Congress and Positive Money, which argue that the additional revenue could help alleviate rising household expenses. Meanwhile, the UK’s four largest banks—HSBC, NatWest, Barclays, and Lloyds Banking Group—have collectively made about £200 billion in pre-tax profits over the last five years.
According to data provided by UK Finance, British banks paid an estimated total of £43.3 billion in taxes during the financial year ending in March 2025. This figure underscores the ongoing debate over the extent of financial contributions the banking sector should make to the UK economy.