JPMorgan Chase CEO Jamie Dimon is set to advise UK Chancellor John Healey against raising taxes on banks during their meeting before the government’s October budget announcement. Dimon plans to express concerns that increasing taxes could deter investment and jeopardize jobs in the financial sector. The meeting takes place amidst speculation that the upcoming 28 October budget could include a windfall tax targeting banks and oil companies.
Currently, UK banks are subjected to a 28% corporation tax rate, which is higher than the standard 25%, and they also face an additional banking surcharge based on their balance sheets within the UK. Dimon has been vocal in opposing further tax hikes, cautioning that such measures could negatively impact the banking sector. In a telephone conversation with Healey in August, Dimon reportedly highlighted how employment in New York’s finance sector has dwindled, partially attributing this to the city’s tax policies.
This is not the first time Dimon and other banking leaders have spoken against tax increases. Prior to the UK government’s budget last year, there was lobbying from the financial community to resist higher taxes. JPMorgan has made significant investments in London, including a £3 billion headquarters in Canary Wharf. However, Dimon has warned that such projects might be reevaluated if the UK implements policies perceived as unfavorable to banks.
Calls for increased taxation on banks have come from organizations like the Trades Union Congress and Positive Money, which argue that the additional revenue could help alleviate rising household expenses. Meanwhile, 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 past five years, fueling the debate on the financial sector’s contribution to public finances.
Data from UK Finance indicate that British banks paid an estimated £43.3 billion in taxes for the financial year ending March 2025. This figure underscores the ongoing discussion about the extent of the banking sector’s fiscal responsibilities and how much more it should contribute to the national budget.