Jamie Dimon, the CEO of JPMorgan Chase, is set to discuss potential tax increases on banks with UK Chancellor John Healey ahead of the government’s October budget announcement. Dimon is likely to caution that raising taxes could deter investments and threaten jobs in the financial sector. This meeting is happening amid rumors of a possible windfall tax on banks and oil companies in the budget slated for 28 October.
Currently, banks in the UK are subject to a 28% corporation tax, higher than the general rate of 25%, in addition to a banking surcharge calculated based on their UK balance sheets. Dimon has consistently voiced opposition to further tax hikes, emphasizing that they could have negative repercussions on the banking industry. During a phone call in August, Dimon reportedly told Chancellor Healey that increased taxes might impact employment, citing New York’s finance-sector job reductions as partly due to its tax policies.
In the past, Dimon and other top banking executives have actively lobbied against increased taxation before the UK government’s budget announcements. JPMorgan, which has committed to significant investments in London, including a £3 billion headquarters in Canary Wharf, may reconsider such plans if the UK introduces tax measures deemed unfriendly to banks. Dimon has warned that the project could be at risk under policies perceived as hostile.
The push for higher taxes on banks has been backed by groups like the Trades Union Congress and Positive Money, which argue that additional tax revenue could help alleviate the rising cost pressures on households. Over the past five years, the UK’s four largest banks—HSBC, NatWest, Barclays, and Lloyds Banking Group—have collectively earned approximately £200 billion in pre-tax profits, adding fuel to the debate on whether the sector should contribute more in taxes.
According to data commissioned by UK Finance, British banks paid an estimated £43.3 billion in taxes in the financial year ending March 2025. This figure underscores the ongoing discussion about the financial sector’s role in contributing to the UK’s public finances and whether further taxation is justified.