Jamie Dimon, chief executive of JPMorgan Chase, has told UK chancellor John Healey that a tougher tax stance towards banks could make the country less attractive for jobs and investment, reported the Financial Times. According to sources, Dimon said heavier taxation can push employment to other locations. He pointed to a notable fall in finance jobs in New York, which he said was partly linked to the city's tax burden.
Dimon was one of several senior banking figures who opposed possible tax increases before last year's Budget. At that time, he was in contact with then chancellor Rachel Reeves while JPMorgan considered plans for a £3bn ($4.05bn) headquarters project in Canary Wharf. People briefed on the latest exchange said Dimon indicated that a windfall tax on bank profits, or broader increases in taxes on wealth, would not be well received.
One person familiar with the discussion said he also argued that the UK's economic difficulties could only be addressed by promoting growth and that the path to this was "through good policy". The same person said his remarks on tax were not aimed solely at the UK and were not "the main part of their conversation". They described the discussion as "very cordial".
Dimon was among the first banking leaders to have an introductory conversation with the new chancellor, with the contact arranged by Healey's team, the report said. Further calls with other bank executives are expected next week. His private advice followed public remarks last month directed at Prime Minister Andy Burnham and the chancellor, when he said that raising taxes on banks could have "adverse consequences".
A person close to Dimon's earlier talks with Reeves before last November's Budget said of the latest contact with Healey: "Jamie Dimon always majors on the impact of bank taxes and will want assurances that a Burnham government will back the new Canary Wharf HQ." When asked whether Dimon had previously suggested the office project could be dropped if taxes on banks were raised, that person replied: "'Threatened' is too strong a word. But of course any business takes into account the fiscal environment before making final decisions about investments." JPMorgan announced plans for a new building at its Riverside site in Canary Wharf the day after Reeves' Budget, saying the project depended on "a continuing positive business environment in the UK". The Trades Union Congress has called on Healey to raise the bank surcharge, currently set at 3% on top of the 25% corporation tax rate, to help ease pressure from the cost of living.
Other banking executives have also criticised the prospect of a heavier tax burden. In June, Santander chair Ana Botín told the FT that the UK system for taxing banks made "no economic sense", adding: "If policymakers are looking for sectors earning outsized returns, there are other places to start." "JPMorgan chief cautions UK chancellor against tougher bank taxes – report " was originally created and published by Retail Banker International, a GlobalData owned brand.
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