Key facts
- JP Morgan CEO Jamie Dimon spoke with UK Chancellor John Healey.
- Dimon warned against increasing taxes on UK banks.
- He cited job losses in New York as a consequence of high taxes.
- The conversation occurred at the request of the Chancellor's team.
- The UK financial sector is anticipating potential tax hikes in the upcoming budget.
JP Morgan chief executive Jamie Dimon has cautioned UK Chancellor John Healey against raising taxes on banks, warning that such a move could lead to job losses and drive financial services elsewhere. Dimon, who has led the Wall Street giant since 2006, conveyed this message during a call with Healey on Thursday, which was requested by the Chancellor's team.
Dimon highlighted the decline in finance roles in New York, attributing it to the city's tax burden, and suggested that higher taxes in the UK could have similar adverse consequences. He previously stated in July that a sector tax would have "adverse consequences" and in May threatened to pull a £3 billion investment if the government became "hostile" to banks.
The conversation occurs as the UK financial services sector braces for potential tax increases ahead of the Chancellor's first Budget on October 28. Campaigners and some politicians are advocating for higher taxes on the industry, with one activist group suggesting a £19 billion windfall tax could be raised from major lenders like Natwest, Lloyds, Barclays, and HSBC.
Economists have warned that the government may need to raise significant funds, potentially up to £25 billion, to meet spending commitments on defense and social care. The Treasury confirmed that the Chancellor regularly meets with senior industry representatives. Earlier this month, Citigroup CEO Dame Jane Fraser also expressed concern over potential new charges on UK banks, noting the UK's 48% effective tax rate compared to lower rates in New York and Dublin.