JPMorgan Chase CEO Jamie Dimon is set to caution UK Chancellor John Healey against imposing additional taxes on banks during their upcoming meeting, which is scheduled to take place before the announcement of the government’s October budget. Dimon intends to argue that increasing levies could deter investment and threaten jobs within the financial sector. This discussion arises amid speculation that the UK government is contemplating a windfall tax targeting banks and oil companies in the forthcoming 28 October budget.
Currently, UK banks are subjected to a 28% corporation tax rate, which is higher than the standard rate of 25%. Additionally, they face a separate banking surcharge based on their UK balance sheets. Dimon has previously expressed opposition to further tax hikes, cautioning that such measures could have negative repercussions for the banking industry. In a conversation with Healey back in August, Dimon reportedly emphasized that heightened taxes could impact employment, citing the decline in finance-sector jobs in New York, a trend he partly attributes to the city’s tax environment.
Banking executives, including Dimon, have previously lobbied against increased taxes before the UK government’s budget last year. JPMorgan, which has made significant investment commitments in London, such as a planned £3 billion headquarters tower in Canary Wharf, has hinted that such projects might be reconsidered if the UK adopts policies perceived as unfriendly to banks.
The push for higher taxes on banks has been advocated by groups like the Trades Union Congress and Positive Money, who argue that additional revenue could help alleviate rising household costs. Meanwhile, the UK’s four largest lenders—HSBC, NatWest, Barclays, and Lloyds Banking Group—have collectively generated around £200 billion in pre-tax profits over the last five years, further fueling the debate over the sector’s contribution to public finances.
According to data commissioned by UK Finance, British banks collectively paid an estimated £43.3 billion in taxes during the financial year ending March 2025. This substantial figure underscores the ongoing debate about how much more revenue the banking sector should be contributing to the UK economy.