JPMorgan Chase’s chief executive, Jamie Dimon, is set to advise UK Chancellor John Healey against increasing taxes on banks during their upcoming meeting prior to the government’s October budget announcement. Dimon’s concern centers around the potential for higher taxes to deter investment and endanger jobs within the financial sector. This meeting is taking place amidst ongoing speculation that the UK government might introduce a windfall tax on banks and oil companies in the upcoming budget on October 28.
Currently, UK banks are subject to a corporation tax rate of 28%, which is above the standard rate of 25%, along with an additional banking surcharge based on their UK balance sheets. Dimon has consistently opposed further tax hikes, citing potential negative impacts on the banking sector. In a phone conversation with Healey in August, Dimon reportedly highlighted how elevated taxes could influence employment levels, referencing the decline in finance roles in New York, which he partially attributed to the city’s tax policies.
In the past, Dimon and other banking industry leaders have actively campaigned against higher taxes before previous UK budget announcements. JPMorgan has also made substantial investment commitments in the UK capital, including a planned £3 billion headquarters tower in London’s Canary Wharf. However, Dimon has warned that such projects could be reconsidered if the UK government adopts policies perceived as unfriendly to banks.
Calls for increased taxes on banks have come from organizations like the Trades Union Congress and Positive Money, suggesting that the additional revenue could be used to alleviate rising household expenses. Meanwhile, the UK’s top four banks—HSBC, NatWest, Barclays, and Lloyds Banking Group—have collectively amassed approximately £200 billion in pre-tax profits over the past five years. This has fueled discussions about the potential for the banking sector to contribute more in terms of tax revenue.
A report commissioned by UK Finance indicates that British banks collectively paid an estimated £43.3 billion in taxes for the financial year ending in March 2025. This underscores the ongoing debate regarding the extent to which the banking sector should be contributing additional revenue, particularly in light of the government’s budget plans.