JPMorgan Chase’s CEO, Jamie Dimon, is set to caution UK Chancellor John Healey against implementing higher taxes on banks during their meeting prior to the government’s October budget announcement. Dimon is expected to argue that increasing taxes could deter investment and jeopardize jobs within the financial sector. This discussion arises amid rumors that the government might introduce a windfall tax on banks and oil companies in the budget slated for 28 October.
The current tax framework for UK banks includes a corporation tax rate of 28%, which is above the standard 25%, in addition to a separate banking surcharge linked to their UK balance sheets. Dimon, who has consistently opposed further tax hikes, warns that such measures could negatively impact the sector. In a phone call with Healey in August, he reportedly highlighted the potential impact on employment, citing the decline in finance-sector jobs in New York as partially stemming from the local tax environment.
Dimon, alongside other banking executives, had previously lobbied against increased taxes before last year’s UK budget announcement. JPMorgan has also committed to significant investments in London, including a £3 billion headquarters in Canary Wharf. Nevertheless, Dimon has cautioned that such projects might be reconsidered if the UK adopts policies perceived as unfriendly towards banks.
The push for higher bank taxes has been supported by groups such as the Trades Union Congress and Positive Money, who argue that the additional revenue could alleviate rising household costs. Meanwhile, the UK’s top four lenders—HSBC, NatWest, Barclays, and Lloyds Banking Group—have collectively generated approximately £200 billion in pre-tax profits over the last five years. These figures feed into the broader debate about the financial sector’s contribution to public revenues.
According to data from UK Finance, British banks collectively paid an estimated £43.3 billion in taxes for the financial year ending March 2025. This substantial tax contribution underscores the ongoing discussion regarding the extent of the financial sector’s obligation to contribute further revenue, as the government weighs its budgetary and economic priorities.