JPMorgan Chase CEO Jamie Dimon is set to advise UK Chancellor John Healey against raising taxes on banks during their upcoming meeting before the government’s budget announcement in October. Dimon plans to emphasize that additional tax burdens could deter investment and jeopardize jobs within the financial sector. This discussion arises amid rumors that the UK government might be contemplating a windfall tax on banks and oil firms in the budget scheduled for 28 October.
Currently, UK banks are subject to a 28% corporation tax, above the standard 25%, alongside a separate surcharge related to their UK balance sheets. Dimon has consistently opposed any further tax hikes, cautioning that such moves could have negative repercussions for the banking industry. In an earlier conversation with Healey in August, Dimon highlighted that increased taxes might impact employment, citing a decline in finance-related positions in New York, which he partly attributed to the city’s tax policies.
Dimon, alongside other banking leaders, has previously lobbied against tax increases before the UK government’s budget decisions in the past year. JPMorgan has pledged significant investments in London, including plans for a £3 billion headquarters tower in Canary Wharf. However, Dimon has warned that such projects could be reconsidered if the UK adopts tax policies perceived as unfavorable to banks.
Advocacy for higher taxes on banks has emerged from groups like the Trades Union Congress and Positive Money, arguing that the additional revenue could help mitigate rising household expenses. Meanwhile, the UK’s four largest banks—HSBC, NatWest, Barclays, and Lloyds Banking Group—have collectively amassed around £200 billion in pre-tax profits over the past five years.
Data from UK Finance indicates that British banks contributed an estimated £43.3 billion in taxes for the financial year ending in March 2025, adding to the ongoing debate about the extent of the financial sector’s tax contributions. As the budget announcement nears, the discussion about the potential impact of increased taxes on banks remains a contentious issue.