JPMorgan Chase chief executive Jamie Dimon has warned Chancellor John Healey against raising taxes on banks. The warning comes as pressure grows over how the Government will raise revenue in the upcoming Autumn Budget.
The warning was reported on 17 August 2026. This makes bank taxation a central issue leading up to the 28 October Budget.
Dimon spoke directly with Healey during an introductory phone call organized by the Treasury. He argued that higher taxes on financial firms could reduce investment and drive banking jobs away from the UK.
Key Summary: What You Need to Know
- The Warning: JPMorgan CEO Jamie Dimon urged Chancellor John Healey not to raise bank taxes in the 28 October Autumn Budget.
- The Reason: Dimon believes higher taxes make the UK uncompetitive, risking capital flight and job losses similar to New York’s recent decline.
- The Debate: Unions like the TUC are pushing for higher bank taxes on record profits. However, the Government has not announced any changes yet.
Why Did Jamie Dimon Issue This Warning?
Dimon wants to protect the UK’s position as a competitive global financial center.
During the call, he pointed to New York as an example. He explained that high city taxes caused finance jobs to move elsewhere. He warned that the UK could suffer the same outcome if it increases bank levies.
This issue matters greatly to JPMorgan. The bank has a massive presence in London and plans a £3 billion European headquarters in Canary Wharf. While Dimon raised clear concerns, the conversation was an industry warning rather than a direct threat to pull that investment.
Why Are Higher Bank Taxes Being Discussed?
Major UK banks have reported strong profits recently. This has led to growing calls for the sector to pay more toward public finances.
The Trades Union Congress (TUC) and political campaign groups want higher taxes on bank earnings. The TUC wants to increase the Bank Corporation Tax Surcharge, while other groups favor a broader windfall tax.
TUC General Secretary Paul Nowak rejected Dimon’s comments. He stated that workers face financial sacrifices while banks make record profits and pay out large shareholder returns.
This places the Government in a difficult position:
- Higher bank taxes could bring in needed public revenue.
- Extra taxes could weaken investment and hurt the UK financial sector.
How Much Tax Do UK Banks Currently Pay?
Banks already pay higher taxes than standard UK businesses through three primary mechanisms:
- Standard Corporation Tax: Commercial banks pay the standard UK rate of 25% on their taxable profits.
- Bank Corporation Tax Surcharge: Banks pay an additional 3% surcharge on relevant profits above £100 million.
- The UK Bank Levy: A balance-sheet charge applied to short-term and long-term chargeable equity and liabilities.
This existing tax load forms the core of Dimon’s argument against further increases.
Has the Government Announced a New Bank Tax?
No. The Government has not announced a windfall tax or an increase to the Bank Corporation Tax Surcharge.
This news reflects ongoing debate before the Autumn Budget. Neither Prime Minister Andy Burnham nor Chancellor John Healey has introduced a new tax on banks.
Business leaders should ignore unconfirmed rumors. Instead, monitor the official Autumn Budget announcement on 28 October for actual policy changes.
What Should UK Businesses Do Now?
This tax debate targets major financial institutions first. However, every UK business should pay attention. The final Budget will reveal how the Government plans to balance corporate taxes, public spending, and economic growth.
- Review your current tax setup: Make sure your financial records and HMRC compliance steps are up to date.
- Avoid acting on speculation: Wait for official legislation before making major structural or investment changes.
- Prepare for confirmed updates: Work with qualified tax advisors to assess new rules after the 28 October Budget announcement.
At Lanop Business & Tax Advisors, we monitor UK tax policy and HMRC updates daily. We help businesses understand confirmed policy changes without reacting to media noise.
For now, the key point is clear: Jamie Dimon has warned against higher bank taxes; pressure for additional taxation is growing, but the Government has not yet announced a change. All eyes will now be on the upcoming 28 October Autumn Budget.
