JPMorgan Chase CEO Jamie Dimon is poised to caution UK Chancellor John Healey against the potential hike in taxes on banks during their meeting prior to the unveiling of the government’s October budget. Dimon is anticipated to argue that imposing higher taxes could deter investment and jeopardize jobs within the financial sector. This meeting is taking place amidst growing speculation that the government may introduce a windfall tax on banks and oil companies in the budget slated for 28 October.
Currently, UK banks are subjected to a 28% corporation tax rate, slightly higher than the standard rate of 25%, in addition to a separate banking surcharge based on their UK balance sheets. Dimon has consistently opposed further tax increases, cautioning that such measures could have negative ramifications for the banking industry. In a previous telephone conversation in August, Dimon reportedly told Healey that heightened taxes could impact employment, drawing parallels with declining finance-sector jobs in New York, which he partly attributes to the city’s tax policies.
Dimon, along with other banking leaders, has a history of lobbying against higher taxes, notably before the UK government’s budget last year. JPMorgan has also been making substantial investment commitments in London, including plans for a £3 billion headquarters tower in Canary Wharf. However, Dimon has warned that such projects might be reconsidered if the UK adopts policies perceived to be unfriendly towards banks.
Advocacy for increased bank taxes has been voiced by groups like the Trades Union Congress and Positive Money, who argue that additional tax revenues could be instrumental in addressing the rising costs faced by households. Meanwhile, the UK’s four major banks—HSBC, NatWest, Barclays, and Lloyds Banking Group—have collectively amassed approximately £200 billion in pre-tax profits over the past five years, intensifying the debate over the sector’s contribution to public coffers.
Data commissioned by UK Finance indicates that British banks collectively paid an estimated £43.3 billion in taxes during the financial year ending March 2025. This figure underscores the ongoing discussion regarding the extent of additional revenue the banking sector should contribute, as pressure mounts on the government to balance fiscal policies with economic growth and employment considerations.