JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon warned UK Chancellor John Healey that higher taxes on banks could drive financial jobs out of the country, citing New York as an example of the potential consequences, according to the Financial Times.
During a call last Thursday, Dimon reportedly argued that the UK’s economic challenges should be addressed through growth and sound policy rather than additional levies on banks. He pointed to a decline in New York finance jobs, which he attributed in part to the city’s tax burden, according to a Financial Times report on Monday.
Notably, in July, New York City Mayor Zohran Mamdani said the city has begun notifying owners of luxury second homes worth over $5 million that its planned pied-à-terre tax is coming, with the revenue intended to fund public services such as parks, libraries and schools.
Dimon was among banking executives who opposed higher bank taxes ahead of last year’s Budget. This happened while JPMorgan was contemplating plans for a new £3 billion London base at Canary Wharf.
The JPMorgan CEO reportedly told Healey that the UK’s economic challenges could only be addressed by fostering growth and implementing sound policy. Healey has not yet expressed his views on bank taxes, but Dimon made it clear that a windfall tax on bank profits or broader wealth tax increases would not be welcomed.
JPMorgan did not immediately respond to Benzinga’s request for comments.
Dimon Warns UK Bank Taxes Could Backfire
Dimon’s reported warning is not the first of its kind. In July, he also warned the new Prime Minister of Britain, Andy Burnham, against raising tax charges on banks, suggesting it could threaten plans to build its headquarters in London and drive investment away from Britain.
On the Master Investor Podcast with Wilfred Frost, Dimon criticized taxes on banks, saying a $5 billion extra tax cost was ultimately borne by shareholders. He warned that penalizing companies through targeted taxes can have unintended consequences.
UK banks face a higher 28% corporation tax rate than the standard 25%, plus a separate levy on their UK balance sheets. Given the substantial profits recorded by banks, they could be a potential target for Healey in his October Budget. Union leaders have been pushing for higher bank taxes to fund a package to help with household energy bills.
Earlier in May, he cautioned that JPMorgan could reconsider its plans for a new London headquarters if the UK became “hostile to banks” through higher taxes and stricter regulations. The CEO said JPMorgan has paid about $10 billion in additional UK taxes and called further tax burdens unfair.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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