Before the UK government’s October budget, JPMorgan Chase CEO Jamie Dimon is set to advise UK Chancellor John Healey against implementing increased taxes on banks. Dimon is poised to argue that heightened taxes could deter investment and threaten jobs within the financial sector. This meeting occurs amid speculation that the government may introduce a windfall tax targeting banks and oil companies on October 28.
Currently, UK banks are subjected to a 28% corporation tax rate, slightly above the standard 25%, alongside a specific banking surcharge tied to their UK balance sheets. Dimon has been vocal about his opposition to further tax hikes, cautioning that such measures could negatively impact the financial sector. This concern was also communicated in August during a phone call with Healey, where Dimon highlighted how increased taxes could affect employment, citing job reductions in New York’s finance sector partially due to its tax policies.
In the past, Dimon, along with other banking leaders, has campaigned against increased taxes before the UK’s budget announcements. JPMorgan has committed to significant investments in London, including a planned £3 billion headquarters in Canary Wharf. However, Dimon has warned that these investments could be reconsidered if the UK pursues policies perceived as unfriendly to banks.
Advocacy for higher taxes on banks comes from groups like the Trades Union Congress and Positive Money, who argue that the additional revenue could alleviate rising household expenses. Meanwhile, the UK’s major banks—HSBC, NatWest, Barclays, and Lloyds Banking Group—have collectively amassed approximately £200 billion in pre-tax profits over the past five years.
Data from UK Finance indicates that British banks paid an estimated £43.3 billion in taxes for the financial year ending March 2025. This figure underscores the ongoing debate about the financial sector’s contribution to government revenues and whether it should be increased.