JPMorgan Chase CEO Jamie Dimon is set to caution UK Chancellor John Healey against raising taxes on banks during their upcoming meeting before the government’s October budget announcement. Dimon is likely to contend that increasing levies could deter investment and jeopardize jobs in the financial sector. The meeting is taking place amidst speculation that the government may introduce a windfall tax on banks and oil companies in the budget set for October 28.
Currently, UK banks are subject to a 28% corporation tax rate, which is higher than the standard 25%, along with an additional banking surcharge based on their UK balance sheets. Dimon has consistently opposed further tax hikes, warning that they could have negative implications for the banking sector. In August, Dimon reportedly communicated to Healey over the phone that higher taxes might impact employment, referencing the decline in finance-sector jobs in New York, which he partly attributes to the city’s tax policies.
In the past, Dimon and other banking leaders have actively lobbied against increased taxes prior to the UK government’s budget last year. JPMorgan has also committed to significant investments in London, such as the development of a £3 billion headquarters in Canary Wharf. However, Dimon has indicated that such projects could be reconsidered if the UK enacts policies perceived as unfriendly to banks.
Advocacy groups like the Trades Union Congress and Positive Money have been pressing for higher taxes on banks, arguing that the additional revenue could help alleviate rising household costs. Meanwhile, the UK’s four largest banks—HSBC, NatWest, Barclays, and Lloyds Banking Group—have collectively amassed approximately £200 billion in pre-tax profits over the past five years.
Figures commissioned by UK Finance reveal that British banks collectively paid an estimated £43.3 billion in taxes for the financial year ending March 2025. This underscores the ongoing debate over how much more the banking sector should contribute to government revenues, as discussions around the new tax proposals gain momentum.