London's investment bankers and lawyers have collectively earned over £1 billion this year from a high volume of takeover deals. This surge in earnings has prompted criticism regarding high City pay amidst the ongoing cost of living crisis.
The value of mergers and acquisitions involving UK stock market listed companies has risen by 175% in 2026, reaching £100 billion. This increase, driven by overseas buyers acquiring British companies, has led to fees paid to investment bankers, lawyers, and accountants on these deals topping £1.2 billion, according to official filings.
The GMB union's national secretary, Charlotte Brumpton-Childs, stated that financial brokers are receiving large sums while many struggle financially. Paul Nowak, general secretary of the Trades Union Congress, reiterated calls for a windfall tax on lenders' profits, arguing that if banks can afford significant payouts, they can afford to pay more tax.
Jamie Dimon, CEO of JP Morgan, and UK Finance have warned against raising taxes on banks ahead of the Chancellor's budget on 28 October. UK lenders currently face a 28% corporation tax rate, higher than the standard 25%, along with a separate surcharge.