JPMorgan's Dimon Warns UK: Bank Tax Hike Could Cost Jobs

Jamie Dimon, the CEO of JPMorgan, has urged UK Chancellor John Healey not to increase taxes on banks' profits, warning that higher levies could hit jobs. The UK's four largest lenders - HSBC, NatWest, Barclays, and Lloyds - reported £29.2bn in profits over the first six months of the year, with almost half of this amount, £13.7bn, pledged to investors through dividends and share buy-backs.

Dimon's warning comes as speculation grows about a possible windfall tax to fund the cost of living agenda, which could raise £19bn for government spending plans. In a phone conversation with Healey, Dimon cited a fall in finance roles in New York that he blamed on the city's tax regime, as an example of the potential consequences of increasing taxes on banks.

Lenders in the UK already pay a 28% corporation tax rate, higher than the standard 25%, as well as a separate levy on their UK balance sheets. Dimon has a long track record of criticizing Britain's bank tax surcharges, which were imposed after the government bailed out big UK lenders in the 2008 financial crisis.

## What's at Stake The planned £3bn tower in London's Canary Wharf district, which is expected to serve as JPMorgan's UK headquarters and house more than half its 23,000 UK workforce, is also at risk if the tax environment becomes less favorable. Dimon has said that he could scrap plans for the tower if Keir Starmer were replaced by a new Labour prime minister who was hostile to banks.

## Why it Matters The UK's banking sector is a significant contributor to the country's economy, and any changes to the tax regime could have far-reaching consequences. The potential job losses and adverse consequences cited by Dimon are a concern, as the UK's cost of living agenda is already under pressure. The government's decision on bank taxes will be closely watched, as it balances the need to fund its spending plans with the need to maintain a positive business environment.

The UK Chancellor, John Healey, and other government officials have not made any specific comments about a bank tax so far, but they have faced many calls to increase the levy. As the government considers its options, Dimon's warning serves as a reminder of the potential risks and consequences of increasing taxes on banks' profits.