JPMorgan Chase CEO Jamie Dimon is poised to caution UK Chancellor John Healey against raising taxes on banks in a meeting anticipated before the government’s October budget announcement. Dimon is expected to argue that increased taxes could deter investment in the financial sector and jeopardize jobs. This discussion arises amid speculation that the government might be contemplating a windfall tax on banks and oil companies as part of the budget set for October 28.
Currently, UK banks are subject to a 28% corporation tax rate, slightly higher than the standard 25%, along with a distinctive banking surcharge based on their UK balance sheets. Dimon has previously voiced opposition to further tax hikes, suggesting that they could have negative impacts on the financial sector. During a phone call with Healey in August, Dimon reportedly highlighted that higher taxes might affect employment levels, referencing declining finance roles in New York, which he partly attributed to the tax situation there.
Dimon, alongside other banking leaders, has a history of lobbying against increased taxes before previous UK government budgets. JPMorgan has made substantial investment commitments in London, including a planned £3 billion headquarters in Canary Wharf. However, Dimon has warned that such projects could be reconsidered if the UK implements policies perceived as unfavorable to banks.
The push for increased bank taxes is driven by organizations like the Trades Union Congress and Positive Money, who argue that additional tax revenues could assist in addressing the rising cost of living for households. In the past five years, the UK’s largest banks—HSBC, NatWest, Barclays, and Lloyds Banking Group—have collectively generated approximately £200 billion in pre-tax profits. Meanwhile, British banks paid an estimated £43.3 billion in taxes during the financial year ending in March 2025, according to figures from UK Finance, highlighting the ongoing debate about the financial sector’s contribution to public funds.
