JP MORGAN BOSS WARNS CHANCELLOR AGAINST BANK TAX RISE

Jamie Dimon, chief executive of JP Morgan, has urged Chancellor John Healey not to increase taxes on banks in his first budget, according to reports of a telephone conversation between the two. Dimon cited concerns that higher levies could reduce employment in the financial sector, referencing a decline in finance roles in New York that he attributed to the city's tax regime. Speculation has grown that the government could impose a windfall tax on UK lenders' profits, with campaigners estimating such a measure could raise £19bn.

UK banks currently pay a corporation tax rate of 28%, higher than the standard 25%, and are subject to a separate levy on their UK balance sheets. Dimon has previously criticised Britain's additional bank taxes, imposed after the government bail-out of major UK lenders following the 2008 financial crisis. He unveiled plans to construct a £3bn tower in London's Canary Wharf district, expected to serve as JP Morgan's UK headquarters and house more than half its 23,000 UK workforce, though he has stated this requires "a continuing positive business environment in the UK".

Paul Nowak, general secretary of the Trades Union Congress, condemned Dimon's position, stating that banks should pay "fair taxes" to help cut energy bills whilst working people face higher costs. Burnham and Healey have not made specific public comments about a potential bank tax. Dimon was among bank bosses who successfully opposed higher taxation in Rachel Reeves' previous budget.