JP Morgan's Jamie Dimon Warns UK Chancellor Against New Bank Tax
Jamie Dimon, the CEO of JP Morgan, urged UK chancellor John Healey not to use his first budget to raise taxes on bank profits, warning that higher levies could cost jobs in the City of London (The Guardian).
In a phone call with Healey, Dimon said that "getting public policy right" was at "the root of solving the problems facing all our economies." He pointed to a decline in finance roles in New York, which he blamed on the city's tax regime, as a cautionary example of how higher taxes can push employment elsewhere. His remarks were first reported by the Financial Times (The Guardian).
The warning comes amid growing speculation that a windfall tax — a one-off levy targeting above-normal profits — could be imposed on UK lenders to fund Andy Burnham's cost-of-living agenda. Campaigners have estimated that such a tax could raise £19 billion. Neither Burnham nor Healey had made any specific public comments about a bank tax as of 17 August 2026 (The Guardian).
Dimon was the first of several bank bosses to have an introductory call with the new chancellor, and conversations with other chief executives were scheduled to follow that week. His comments on tax were not specific to the UK and had no link to plans for a new JP Morgan headquarters in London, according to a person familiar with the conversation (The Guardian).
UK banks already face a heavier tax burden than most companies. They pay a 28% corporation tax rate, above the standard 25%, plus a separate surcharge on their UK balance sheets. In July 2026, Dimon said raising these additional bank taxes further could have "adverse consequences" (The Guardian).
The lobbying has a recent precedent. Dimon was among bank bosses who successfully lobbied against higher taxes in Rachel Reeves' budget the previous year. A day after that outcome, he approved a 3 million square foot tower in London's Canary Wharf, conditioned on a "continuing positive business environment in the UK" (The Guardian). In May 2026, Dimon said JP Morgan could scrap plans for the £3 billion tower, expected to house more than half its 23,000 UK workforce, if Keir Starmer were replaced by a prime minister hostile to banks (The Guardian).
Paul Nowak, general secretary of the Trades Union Congress (TUC), condemned Dimon's remarks, arguing that banks should be asked to pay fair taxes to help cut energy bills (The Guardian).
The broader context here is that large financial institutions have repeatedly used investment commitments to shape tax policy in countries where they maintain large operations. JP Morgan's planned Canary Wharf tower, with its explicit condition tied to the UK business environment, serves as a concrete signal: the firm has a £3 billion commitment it can accelerate or withdraw depending on fiscal policy outcomes. Whether that leverage proves as effective under Healey as it did under Reeves is an open question, but Dimon's decision to call before other bank CEOs suggests a deliberate effort to frame the terms of the debate early.
The counterpressure from the TUC signals that any decision on a windfall tax will involve competing political constituencies. Campaigners' £19 billion estimate gives the proposal a concrete fiscal figure that could appeal to a chancellor seeking to fund an ambitious cost-of-living agenda, particularly if public revenues are tight. Against that, the banking sector's argument centres on competitiveness: the UK already imposes a higher effective tax rate on banks than the standard corporate rate, and sector leaders have repeatedly warned that further increases risk weakening London's position as a global financial centre. Healey's first budget will reveal which argument carries more weight.
One notable detail is the silence from both Burnham and Healey on the specifics of a bank tax. The speculation has been driven by campaigners and media reporting rather than confirmed policy intent, which means the windfall tax may be more of a floating trial balloon than a committed measure. Dimon's preemptive lobbying, however, indicates that banks are not waiting for confirmation before pressing their case.
