Jamie Dimon, CEO of JP Morgan, has delivered a stark warning to Andy Burnham's new administration: any punitive tax measures could have far-reaching consequences for the bank's £10bn London tower project. In an intervention that speaks volumes about his concerns over the UK's fiscal policies, Mr Dimon urged policymakers to adopt measures conducive to capital formation and economic growth.
Speaking candidly on the Master Investor podcast, Mr Dimon expressed his hope that London would remain JP Morgan's European base for a 'long period of time', but warned that any government contemplating penalising companies risks undermining its competitiveness. He underscored the importance of a consistent and competitive tax system in attracting and retaining capital – a key driver of national growth.
The bank's remarks coincide with a critical decision facing Mr Burnham's administration regarding a significant tax break for the proposed London tower. A Memorandum of Understanding (MoU) signed last month indicated the project would be exempt from business rates, but this non-legally binding document now requires progression to a legally binding agreement.
This high-stakes decision will be closely watched by businesses as a signal of the government's stance on encouraging international investment. The banking sector is also bracing for potential increases to the UK Bank Levy, which banks currently pay at a rate of 28 per cent – comprising a three per cent surcharge on top of the standard 25 per cent corporation tax rate.
Mr Dimon reiterated his long-held view that the UK Bank Levy was 'wrong', arguing that JP Morgan did not contribute to the UK's financial crisis and should not have been penalised. He praised Rachel Reeves' previous work, stressing the need for 'good policies that actually cause growth' from the next Chancellor.