Key facts
- JP Morgan CEO Jamie Dimon met with UK Chancellor John Healey and Andy Burnham to lobby against raising taxes on banks.
- Dimon warned that increased bank taxes could put investment and employment in the UK at risk.
- Healey is reportedly considering a windfall tax on banks and oil companies for his October 28 budget.
- UK banks currently pay a 28% corporation tax rate plus a surcharge on their UK balance sheets.
- HSBC, NatWest, Barclays, and Lloyds Banking Group generated £200 billion in pre-tax profits over the past five years.
- UK banks paid an estimated £43.3 billion in tax for the financial year ending March 2025.
UK finance leaders, including JP Morgan CEO Jamie Dimon, are lobbying Chancellor John Healey to resist increasing taxes on banks in his upcoming budget on October 28. Dimon met with Healey and Andy Burnham on Wednesday, warning that higher taxes could jeopardize investment and employment in the UK's financial sector. The meeting comes amid speculation that Healey is considering a windfall tax on banks and oil companies.
Dimon has a history of opposing Britain's additional bank taxes, which were introduced after the 2008 financial crisis bailouts. UK lenders currently face a 28% corporation tax rate, higher than the standard 25%, along with a surcharge on their balance sheets. Dimon previously warned in August that further tax increases could negatively impact jobs, citing a decline in finance roles in New York attributed to its tax regime.
In May, Dimon indicated that plans for a new 3 million sq ft tower in London, intended to be JP Morgan's UK headquarters and house over half of its 23,000 UK employees, could be scrapped if the UK government became hostile to banks. While Burnham has not commented specifically on a bank tax, he has faced calls from groups like the TUC and Positive Money to consider higher levies to help address the cost of living crisis.
According to a report commissioned by UK Finance, the UK's four largest banks—HSBC, NatWest, Barclays, and Lloyds Banking Group—generated £200 billion in pre-tax profits over the last five years, largely due to rising interest rates. These banks collectively paid an estimated £43.3 billion in tax for the financial year ending March 2025.