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Jamie Dimon urges UK chancellor against higher taxes on banks
Campaigners estimate a UK windfall tax on bank profits could raise £19bn, a move Dimon warned could reduce City jobs.
JP Morgan chief executive Jamie Dimon urged UK chancellor John Healey not to use his first budget to raise taxes on banks’ “bumper profits,” saying higher levies could harm employment in financial centers. The Guardian Business reports Dimon made the point in a phone conversation with Healey, according to information relayed to a person familiar with the call.
The article says speculation has grown that the UK could impose a windfall tax on lenders to help fund Andy Burnham’s cost of living agenda, with campaigners estimating the measure could raise £19bn. It also notes Dimon has a history of criticizing UK bank tax surcharges.
Dimon’s warning cited an employment impact he linked to New York’s tax regime, and the outlet reports his comments were first covered by the Financial Times before drawing condemnation from Paul Nowak, general secretary of the Trades Union Congress. Nowak said people are tired of being asked to tighten their belts while profits, dividends, and bankers’ bonuses reach record highs.
The Guardian Business also notes UK lenders pay a 28% corporation tax rate, above the standard 25%, plus a separate surcharge on UK balance sheets. It adds Dimon has previously lobbied against higher bank taxes and that JP Morgan has discussed building a 3m sq ft tower in London’s Canary Wharf, with plans tied to a “continuing positive business environment in the UK.”