JPMorgan Chase CEO Jamie Dimon is anticipated to caution UK Chancellor John Healey against imposing higher taxes on banks during their upcoming meeting prior to the government’s budget announcement in October. Dimon is likely to argue that increasing taxes could deter investment and jeopardize jobs within the financial sector. This meeting comes amid speculation that the government might introduce a windfall tax targeting banks and oil companies in the budget set for October 28.
Currently, UK banks are subjected to a 28% corporation tax rate, which is higher than the standard 25%, along with an additional banking surcharge based on their UK balance sheets. Dimon has consistently opposed further tax hikes, warning of potential negative impacts on the banking sector. In a phone conversation in August, Dimon reportedly told Healey that higher taxes could lead to job losses, citing New York’s declining finance-sector roles, which he partially attributed to the city’s tax policies.
Dimon and other banking leaders have previously campaigned against increased taxes in the lead-up to the UK government’s budget last year. JPMorgan has made significant investment commitments in London, such as the planned £3 billion headquarters tower in Canary Wharf. However, Dimon has cautioned that these plans could be reconsidered if the UK implements policies perceived as unfriendly to banks.
Advocacy for increased bank taxes has come from organizations like the Trades Union Congress and Positive Money, who argue that additional revenue could help alleviate rising household costs. Meanwhile, over the past five years, the UK’s top four lenders—HSBC, NatWest, Barclays, and Lloyds Banking Group—have amassed approximately £200 billion in pre-tax profits.
According to UK Finance, British banks collectively contributed an estimated £43.3 billion in taxes during the financial year ending March 2025. This figure underscores the ongoing debate about the extent of additional revenue the sector should provide. Dimon’s meeting with Healey is expected to be a pivotal moment in this discussion, as both sides weigh the implications of any potential tax changes on the financial industry and the broader economy.