Key facts
- JP Morgan CEO Jamie Dimon will meet UK Chancellor John Healey ahead of his first Budget.
- Dimon plans to warn Healey against raising taxes on banks.
- Healey is reportedly considering a windfall tax on banks and oil companies.
- Dimon has previously warned that higher bank taxes could negatively impact investment and employment.
- UK banks currently pay a 28% corporation tax rate plus a surcharge on their balance sheets.
JP Morgan CEO Jamie Dimon is scheduled to meet with UK Chancellor John Healey ahead of Healey's first Budget on October 28. Dimon plans to warn Healey against increasing taxes on banks, arguing that such a move could jeopardize investment and employment in the UK. This meeting comes amid speculation that Healey is considering a windfall tax on banks and oil companies.
Dimon has a history of opposing additional bank taxes in the UK, which were introduced after the 2008 financial crisis. UK lenders currently face a 28% corporation tax rate, higher than the standard rate, along with a surcharge on their balance sheets. Dimon has previously cautioned that further tax increases could lead to "adverse consequences," citing job losses in New York attributed to the city's tax policies.
In August, Dimon reportedly discussed these concerns with Healey via telephone. He has also previously hosted government officials and engaged in lobbying efforts against higher bank taxes. Days after hosting a royal event at JP Morgan's Manhattan headquarters, Dimon announced plans for a significant new tower in London's Canary Wharf, contingent on a positive business environment. However, he has also indicated that these plans could be scrapped if a future Labour government proved hostile to the banking sector.
The banking industry, represented by bodies like UK Finance, is actively engaging with the government to highlight the sector's economic contributions and warn against punitive tax measures. UK banks have reported substantial profits in recent years, largely driven by rising interest rates, and contribute significantly to tax revenues.