- Jamie Dimon warned Andy Burnham against launching a tax raid on banks, urging the new Prime Minister to focus on growth.
- Dimon stated there would be 'adverse consequences' if Burnham targeted lenders with fresh windfall taxes to fund his spending plans.
- He expressed concern that such a tax could threaten plans to build a £3 billion headquarters in London and drive investment away from Britain.
- Dimon emphasized that good policies are free and that growth is the best antidote, praying that the new chancellor gets policy right.
- Dimon criticized the bank levy, which was introduced after the global financial crisis, stating it has cost his company $5 billion.
- He warned that an uncompetitive tax system could lead to capital leaving the country, as seen with companies delisting from London.
JP Morgan CEO Jamie Dimon has issued a stark warning to UK Chancellor Andy Burnham regarding proposed tax increases on banks, stating that such measures could have adverse consequences for the economy. Dimon emphasized that penalizing banks could deter investment and lead to capital flight from the UK.1
In a recent interview on The Master Investor Podcast, Dimon expressed concern that a non-competitive tax system would drive companies away, noting, “If you have an uncompetitive tax system, capital leaves your country.” He highlighted the potential impact on JP Morgan's plans to build a new £3 billion headquarters in Canary Wharf, stating, “I don’t know what I would do” if taxes were raised.389
Dimon criticized the existing bank levy, which was introduced after the financial crisis, calling it unfair to shareholders. He remarked, “It may sound great, ‘tax the banks,’ but it’s $5 billion that my shareholders paid on that extra tax.” He urged the new chancellor to focus on policies that foster growth, saying, “The new chancellor [is] going to need good policies that actually cause growth.”4567
Dimon’s comments come amid pressure from trade unions advocating for wealth taxes, with estimates suggesting that reversing previous tax cuts could raise £9 billion over four years. He concluded by expressing hope that Burnham and his chancellor would prioritize economic growth, stating, “I’m praying that they get policy right.”
“Dimon said the UK bank levy has cost his company $5 billion, calling it unfair to shareholders. Trade unions have urged Burnham to tax wealth, with the TUC claiming £9bn could be raised over four years by reversing a cut to the bank surcharge.”
The Guardian
The Times
