Jamie Dimon, CEO of JPMorgan Chase, issued a stark warning regarding potential increases in bank taxation in the UK. He indicated that if a future Labour government, particularly one influenced by figures like Andy Burnham, were to adopt policies hostile to banks, such as significantly raising taxes, JPMorgan might reconsider its investments in the UK. This includes the planned $3 billion skyscraper in Canary Wharf, which is expected to house over half of its 23,000 UK staff and inject $10 billion into the local economy, though other sources cite the economic injection as £10 billion.
Dimon's concern centers on what he perceives as already excessive taxes on banks in the UK, stating, "We paid probably $10 billion in extra taxes by now… I don’t think that’s right or fair. If that happens too much we will reconsider.” He highlighted that the total tax rate for the banking sector in London was 46.4% in the last year, significantly higher than competitors like Amsterdam (42.2%), Frankfurt (38.9%), Dublin (28.9%), and New York (27.9%). The UK banking sector paid an estimated £43 billion ($52.6 billion) in taxes last year, making up about 4.3% of total government receipts.
The warning comes amidst proposals from the Trades Union Congress (TUC), backed by Andy Burnham, to increase tax on the City of London by an additional £9 billion to £60 billion over four years. This could be achieved by raising the bank surcharge from 3% to 8% (raising £9 billion), to 16% (raising £24 billion), or even higher to raise an additional £60 billion. UK Finance, representing over 300 financial firms, has rejected these calls, emphasizing that tax increases could deter investment and lead to an exodus of bankers from London, impacting the UK's competitiveness as a global financial center.
