JPMorgan Chase CEO Jamie Dimon is set to advise UK Chancellor John Healey against raising taxes on banks during their upcoming meeting ahead of the October budget announcement. Dimon plans to emphasize that increasing levies could deter investment and endanger jobs within the financial sector. This meeting takes place as speculation mounts around the government’s potential implementation of a windfall tax targeting banks and oil companies in the budget set for October 28.
Currently, UK banks are subject to a 28% corporation tax rate, which is higher than the standard 25%, alongside an additional banking surcharge based on their UK balance sheets. Dimon has consistently opposed further tax hikes, cautioning that such moves could negatively impact the banking sector. In a phone conversation in August, Dimon reportedly conveyed to Healey that higher taxes might lead to job losses, drawing parallels to New York’s diminishing finance-sector roles, which he partly blames on the city’s tax environment.
In the past, Dimon and other banking leaders have actively lobbied against tax increases before the UK government’s budget announcements. JPMorgan has committed to substantial investments in London, including a £3 billion headquarters planned for Canary Wharf. However, Dimon has warned that such projects might be reconsidered if the UK enacts policies perceived as unfriendly to banks.
Advocacy groups like the Trades Union Congress and Positive Money are among those pressing for higher taxes on banks, arguing that the additional revenue could help alleviate the economic pressure on households. The UK’s top four lenders—HSBC, NatWest, Barclays, and Lloyds Banking Group—have collectively generated around £200 billion in pre-tax profits over the last five years, fueling the debate on the industry’s fiscal contributions.
According to data from UK Finance, British banks paid an estimated £43.3 billion in taxes during the financial year ending in March 2025, underlining the ongoing discussion about the sector’s role in contributing additional revenue. As Dimon prepares to meet with Healey, the future tax landscape for banks remains a contentious issue, with significant implications for investment and employment within the UK financial industry.
