JP Morgan boss tells John Healey that higher levies risk jobs as windfall tax speculation mounts
JP Morgan chief executive Jamie Dimon (pictured right) has urged Chancellor John Healey to hold back from raising taxes on bank profits ahead of the upcoming budget, amid growing speculation that the government is considering a windfall levy on UK lenders.
Dimon raised the issue during a phone call with Healey, warning that steeper charges could reduce employment in the financial sector. He pointed to declining finance jobs in New York, which he attributed to that city's tax environment.
A source familiar with the discussion noted that Dimon's comments were not specifically directed at UK tax policy, and that his was the first in a series of introductory calls between Healey and bank chief executives.
Campaign groups have estimated that a windfall tax on UK lenders could generate up to £19 billion, with proponents arguing the funds could support Andy Burnham's cost of living agenda.
The remarks drew criticism from Paul Nowak, general secretary at the Trades Union Congress, who was quoted by The Guardian as saying: "People are sick and tired of being told they have to tighten their belts while profits, dividends and bankers' bonuses hit record highs. The new chancellor has a clear opportunity to show working people he's on their side by asking banks to pay fair taxes to cut energy bills."
Dimon has a long-standing record of opposing the UK's additional bank levies, which were introduced following the government's bailout of major lenders during the 2008 financial crisis. UK-based lenders currently face a 28% corporation tax rate — above the standard 25% — alongside a separate surcharge on their UK balance sheets.
Speaking on the Master Investor Podcast in July, Dimon said that further tax increases could have "adverse consequences", adding: "It would be one more negative on that bucket of things you got to think about."
Dimon was also among the banking executives who lobbied successfully against higher levies in Rachel Reeves' budget last year. The day after that budget, he announced plans for a 3 million square feet tower in London's Canary Wharf, conditional on a "continuing positive business environment in the UK." In May this year, he indicated the £3 billion project — intended as JP Morgan's UK headquarters and expected to accommodate more than half of its 23,000-strong UK workforce — could be cancelled if a new Labour prime minister hostile to banks succeeded Keir Starmer.
Neither Burnham nor Healey has made any specific statement on a potential bank tax, though both have faced repeated pressure to increase the levy. The UK's four largest banks — HSBC, NatWest, Barclays, and Lloyds — collectively posted £29.2 billion in profits during the first half of the year. Of that total, approximately £13.7 billion was earmarked for investors via dividends and share buybacks.
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