Dimon Warns UK Against Bank Windfall Tax Amid Fiscal Pressure
JPMorgan CEO Jamie Dimon has warned the UK government against imposing a windfall tax on banks, citing concerns that it could undermine the competitiveness of Britain's financial sector.
Dimon met with Finance Minister John Healey and newly appointed Prime Minister Andy Burnham to discuss the issue, which is expected to be addressed in the upcoming Autumn Budget on October 28.
The UK government is facing pressure to raise revenue and reduce borrowing costs, but banks argue that a windfall tax would be counterproductive. Banks already pay a combined tax rate of 46.4% on their UK operations, according to industry body UK Finance.
David Postings, CEO of UK Finance, warned that increasing taxes could 'ultimately risk undermining the very tax base the government seeks to protect and grow' while damaging Britain's international competitiveness.