As JPMorgan Chase CEO Jamie Dimon prepares to meet with UK Chancellor John Healey, he is expected to caution against the government’s potential move to increase taxes on banks in the forthcoming October budget. Dimon plans to argue that raising taxes could dampen investment prospects and jeopardize jobs within the financial sector. This meeting occurs amidst speculation that the UK government is contemplating implementing a windfall tax on banks and oil companies in the budget scheduled for October 28.
Currently, UK banks are subject to a corporation tax rate of 28%, which is higher than the standard 25%, coupled with an additional banking surcharge calculated based on their UK balance sheets. Dimon has previously expressed his opposition to further tax hikes, warning that they could negatively impact the financial sector. Back in August, during a phone call with Healey, Dimon reportedly highlighted concerns that higher taxes might affect employment, noting the decline in finance jobs in New York, which he partly attributed to the city’s tax environment.
Dimon, along with other banking leaders, has a history of lobbying against tax increases ahead of UK budget announcements, as seen in their efforts last year. JPMorgan has made significant investments in London, including a £3 billion headquarters project in Canary Wharf. However, Dimon has indicated that such investments could be reconsidered if UK policies are perceived as unfriendly to banks.
Advocacy groups like the Trades Union Congress and Positive Money have been vocal about the need for higher taxes on banks, suggesting the additional revenue could alleviate rising household expenses. Meanwhile, the UK’s top four banks—HSBC, NatWest, Barclays, and Lloyds Banking Group—have collectively generated around £200 billion in pre-tax profits over the past five years, fueling the debate over the appropriate level of taxation for the sector.
Data from UK Finance indicates that British banks paid an estimated £43.3 billion in taxes in the financial year ending March 2025. This figure underscores the ongoing discussion regarding how much more financial institutions should contribute in taxes, a topic likely to be at the forefront of Dimon and Healey’s impending discussions.