In an upcoming meeting with UK Chancellor John Healey, JPMorgan Chase CEO Jamie Dimon plans to caution against raising taxes on banks as part of the government’s forthcoming budget slated for 28 October. Dimon is expected to express concerns that increasing levies could deter investment and jeopardize jobs within the financial sector. The discussions are set against a backdrop of speculation that the government might introduce a windfall tax targeting banks and oil companies in the October budget.
Currently, UK banks are subjected to a 28% corporation tax rate, which is higher than the standard 25%, along with an additional banking surcharge tied to their UK balance sheets. Dimon has been vocal in his opposition to further tax hikes, citing potential negative impacts on the sector. In a conversation with Healey in August, Dimon reportedly highlighted how higher taxes could affect employment, drawing parallels with New York’s finance-sector job declines, which he partially attributed to the city’s tax policies.
Previously, Dimon, along with other banking executives, has lobbied against increased taxes in anticipation of the UK government’s budget announcements. JPMorgan has pledged considerable investments in London, notably a £3 billion headquarters project in Canary Wharf. However, Dimon has suggested that such investments might be reconsidered if the UK adopts measures perceived as unfavorable to banks.
Advocacy for higher taxes on banks has been fueled by groups like the Trades Union Congress and Positive Money, who argue that additional tax revenues could alleviate rising household expenses. In contrast, 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 last five years, prompting debate over their financial contributions.
Data commissioned by UK Finance indicates that British banks paid an estimated £43.3 billion in taxes during the financial year ending March 2025. This figure underscores the ongoing discussion about the sector’s role in generating revenue for the government and whether further financial contributions should be demanded from banks.