JPMorgan Chase CEO Jamie Dimon is poised to advise UK Chancellor John Healey against imposing higher taxes on banks during their upcoming meeting prior to the October budget announcement. Dimon plans to caution that increased taxes could deter investment and threaten jobs within the financial sector. This discussion is set against the backdrop of speculation that the UK government might introduce a windfall tax on banks and oil companies in the budget set for 28 October.
Currently, banks in the UK are subject to a corporation tax rate of 28%, which is higher than the standard rate of 25%. They also pay an additional banking surcharge based on their UK balance sheets. Dimon has consistently opposed any further tax hikes, warning of potential negative impacts on the banking sector. In a prior phone conversation with Healey in August, Dimon expressed concerns that higher taxes could adversely affect employment, citing job declines in New York’s financial sector as partly due to the city’s tax policies.
Dimon, along with other banking leaders, has previously campaigned against increased taxes ahead of past UK government budgets. JPMorgan has committed to significant investments in London, including a £3 billion headquarters in Canary Wharf. However, Dimon has hinted that such projects might be reevaluated if the UK pursues policies perceived as unfavorable to banks.
Advocacy for higher taxes on banks has come from organizations like the Trades Union Congress and Positive Money. They argue that increased revenue from the banking sector could help mitigate rising household costs. Over the last five years, the UK’s four biggest banks—HSBC, NatWest, Barclays, and Lloyds Banking Group—have reported pre-tax profits totaling approximately £200 billion.
According to data from UK Finance, British banks collectively paid an estimated £43.3 billion in taxes during the financial year ending March 2025. This figure underscores the ongoing debate about how much additional financial contribution should be expected from the banking sector.