JPMorgan Chase CEO Jamie Dimon warned UK Chancellor John Healey that higher taxes on banks could drive financial jobs out of the country, citing New York as an example of the potential consequences. During a call last Thursday, Dimon argued that the UK's economic challenges should be addressed through growth and sound policy rather than additional levies on banks, pointing to a decline in New York finance jobs which he attributed in part to the city's tax burden. Dimon was among banking executives who opposed higher bank taxes ahead of last year's Budget, while JPMorgan was contemplating plans for a new £3 billion London base at Canary Wharf. UK banks face a higher 28% corporation tax rate than the standard 25%, plus a separate levy on their UK balance sheets, and union leaders have been pushing for higher bank taxes to fund a package to help with household energy bills. Earlier in May, Dimon cautioned that JPMorgan could reconsider its plans for a new London headquarters if the UK became hostile to banks through higher taxes and stricter regulations, saying the bank has paid about $10 billion in additional UK taxes.
JPMorgan Chase & CoDimon warns UK bank tax hikes could drive finance jobs out, potentially affecting JPMorgan's London plans.
