JPMorgan chief warns UK tax hike could jeopardise £3bn Canary Wharf project

In a Treasury‑arranged call, JPMorgan’s chief executive Jamie Dimon cautioned Finance Minister John Healey that increasing taxes on the financial sector could push firms to relocate staff and endanger a £3 billion development at Canary Wharf.

Why the warning matters now

The United Kingdom is set to deliver its first budget under the new Chancellor on 28 October. Pressure is building from industry bodies and left‑wing politicians for a larger levy on banks, including a proposed £19 billion windfall tax targeting NatWest, Lloyds, Barclays and HSBC.

Dimon pointed to a recent fall in finance‑related positions in New York, which he attributes to the city’s tax burden, and argued that a comparable approach in Britain could diminish the sector’s contribution to both employment and tax receipts.

Fiscal pressures and possible tax moves

The Treasury says extra revenue is needed to fund defence and social‑care commitments. Analysts suggest the government may need as much as £25 billion, which could see the banking surcharge rise above the current three‑per‑cent rate that sits on top of corporation tax.

Last year, Chancellor Rachel Reeves oversaw a £26 billion tax collection, and a similar scale of revenue‑raising could be on the table this time.

Potential impact on investment

Dimon has already indicated that JPMorgan would withdraw its £3 billion investment in a new tower on Canary Wharf if the policy climate turned “hostile”. The scheme, which is seeking a full business‑rates exemption, forms a central part of the bank’s expansion plans in the UK.

Other senior bankers share the concern. Dame Jane Fraser of Citigroup said she was “concerned” about any fresh charge on UK banks, adding, “Money votes with its feet,” and highlighted the contrast between the UK’s 48 per cent effective tax rate and the 27 per cent rate in New York and 28 per cent in Dublin.

Next steps

Healey and the Chancellor’s team are scheduled to meet additional industry leaders in the coming days, while the Treasury is expected to outline its revenue‑raising strategy in the October budget.

A decision to raise the banking surcharge or introduce a windfall tax could force JPMorgan and its peers to rethink capital projects, potentially delaying or scaling back the Canary Wharf development. Market observers will be watching for signals that balance the need for additional revenue against the risk of driving finance jobs overseas, a balance that could shape the UK’s standing as a global banking hub for years to come.