Dimon Warns UK of Tax Reforms' Potential Damage to Financial Sector
JPMorgan Chase CEO Jamie Dimon has expressed concerns over the UK's plans to raise taxes on banks. According to the Financial Times, Dimon warned British Treasury Secretary John Healy in a phone call that higher taxes could lead to fewer financial jobs and investment. The banking sector is bracing for potential tax increases, with some predicting it could be included in the October budget.
The UK unions are calling for a tax increase on banks to raise funds to support household energy costs. Dimon pointed out that increased taxes had previously led to a significant decline in financial jobs in New York City. JPMorgan is investing 3 billion pounds (approximately 5.76 trillion won) in London's Canary Wharf Riverside, which may be affected by the tax measures.
The banking sector is expected to enter full-fledged lobbying amid concerns over pressure from the government to secure tax revenues. Dimon's warning comes after discussions about raising bank taxes were considered last year but ultimately not included in the budget due to strong lobbying by the banking sector.