US bank chief warns UK tax hikes could push jobs out of London

Jamie Dimon cautions that higher taxes on banks and wealth may drive financial jobs away from London, a concern for North American finance hubs.

Jamie Dimon, chief executive of JPMorgan Chase, warned Chancellor John Healey that London risks job losses if the government raises taxes on the wealthy and the financial sector. The warning matters for North American finance centres, where many firms have operations in both the United Kingdom and the United States, and where talent mobility is closely watched.

Labour leader Andy Burnham has signalled that he may increase taxes on the better off to fund his radical reforms for Britain, including the biggest devolution of power in modern times.

Dimon told Mr Healey in a phone call that higher taxes can result in jobs being driven elsewhere, citing a decline in finance roles in New York that he partly blamed on the city's tax burden.

He warned against a higher windfall levy on bank profits or wider tax rises on wealth, according to the Financial Times.

The Standard understands that Mr Dimon's comments were not about JPMorgan's planned new £3 billion headquarters in London but were highlighting more broadly how cities can lose financial posts if taxes are ramped up.

JPMorgan Chase employs 23,000 people in London, Bournemouth, Glasgow and Edinburgh.

Canada's major banks watch the UK debate closely because similar tax proposals could affect cross‑border investment flows and the movement of skilled workers between Toronto and London.

Analysts note that if the UK adopts a less competitive tax regime, some firms may shift activities to more favourable jurisdictions, a pattern that has been observed in the United States as well.

Mr Healey, who is due to deliver his first Budget in the autumn, is set to have further conversations with bank bosses in the coming days.

The talks come as trade union chiefs are urging the Labour government to hike taxes on banks by between £9 billion and £60 billion over four years.

Paul Nowak, General Secretary of the Trades Union Congress, said recently: "Our big four banks in this country are making something like a billion pounds in profits every single week. We had a record year for bankers' bonuses last year in the City of London. I don't think it's unfair to ask those with the broadest shoulders to help out families who are going to struggle with those heating bills."

Mr Dimon has previously warned against raising taxes on the industry and criticised the UK's corporation tax surcharge for banks.

Earlier this month, he said in an interview for the Master Investor Podcast that he "always thought it was wrong". He argued, referring to the 2008/09 financial crisis: "JPMorgan did not damage the UK… I just thought it lacked principle to punish a company that had nothing to do with the crisis, and is still there 16‑17 years later."

On the potential for the surcharge to be hiked, Mr Dimon said: "If the Government decides to do it then there's nothing I can do, but it will over time cause decisions to be made that they may not like. If you have an uncompetitive tax system, capital leaves your country and… goes to other countries", he warned, referring to an exodus of companies from London's stock markets in the past two years.

Chancellor John Healey, who resigned as Defence Secretary from Sir Keir Starmer's government in a row over military spending, will deliver his first Budget as Chancellor on October 28.

He faces having to find billions to fund Mr Burnham's devolution priorities, increased defence spending and to address Britain's social care crisis.

Mr Burnham has backed former Chancellor Rachel Reeves' decision to introduce the "mansion tax" on homes worth £2 million or more which will hit London and the South East hardest.

But he has played down the prospect of imminently replacing council tax and stamp duty with a new property levy which could land London with a £7.5 billion extra bill.

Economists have warned Mr Healey that he will need to either raise taxes or cut spending as pressure on the public finances has left no room for extra borrowing.