JP Morgan boss Jamie Dimon to meet Chancellor John Healey ahead of Budget
JP Morgan boss Jamie Dimon is set to meet John Healey today ahead of the new Chancellor’s first Budget, Morning Wire understands.
The American banker – regarded as one of the most influential figures in global finance – is due to meet Healey in London for the first time following a phone call exchange last month.
It comes as Healey gears up for his first major fiscal event as Chancellor, where he is expected to be facing a reduction in fiscal headroom due to the economic impact of the US-Iran war.
Some economists have predicted the £23.6bn left by his predecessor Rachel Reeves at last year’s Budget could be as much as halved after a rout in global bond markets pushed up the cost of borrowing.
The meeting comes amid fears Healey and Andy Burnham could launch a punishing tax raid on the UK banking sector at the Budget., set for October 28.
In their August exchange on the phone, the Wall Street chief is understood to have emphasised “getting public policy right” as crucial to solving economic problems.
The call was at the request of Chancellor’s team, a person close to the conversation said, and came ahead of several other industry peers also speaking with Healey in the same week.
Banking industry in defence over tax hike
The financial services sector have launched a major defensive effort ahead of the Budget as campaigners and left-wing politicians lobby for the industry to face higher taxes.
UK Finance, the industry body for the banking sector, has written to Healey warning over the consequences of targeting the industry.
In a letter seen by Morning Wire, the body’s boss David Postings wrote: “Banking reaches every part of the economy and every region of the country, providing credit to households and SMEs, supporting investment, and acting as the UK’s gateway to global markets.”
He added: “The debate needs to recognise both the significant tax contribution already made and the wider economic importance of sustainable profitability.”
Dimon, who commands a pay package of $43m, has previously cautioned against sector-specific levies.
He warned in July that a tax on the sector would have “adverse consequences”. He also said in May the company could pull its £3bn skyscraper investment if the government became “hostile” to banks.
The Treasury did not immediately respond to a request for comment.