JP Morgan to press on with London HQ despite new bank tax in ‘boring budget’ – as it happened
News Source
•Wed, 28 Oct 2026 17:38:01 GMT
📰 What Happened
JP Morgan will go ahead with its new £3bn London headquarters, despite a tax rise on banks. The 3 million square foot tower in Canary Wharf will house about half of its 23,000 UK staff. The bank is still expected to file its planning application within months. The decision follows a budget that doubled the bank surcharge from 3% to 6% for 15 months. Jamie Dimon, the bank's boss, warned earlier this year that it could scrap the building if Britain turned "hostile" to banks. One bank executive called the tax "a punch in the face".
🔍 The Backstory
London's financial district has been nervous since Brexit. Banks moved thousands of jobs to Frankfurt, Paris and Dublin, and the City has fought to keep its place. The government wants bank taxes to help pay for public spending, but it also needs lenders to stay and invest. The surcharge is expected to raise only about £1.5bn, a small sum next to the budget's overall gaps. Investors welcomed what many called a "boring budget", and bank shares rose once the tax was confirmed as temporary. A JP Morgan spokesperson said targeting a lucrative sector "lacks principle".
🎯 Why It Matters
Banks staying means jobs and tax money for Britain. If lenders leave, the cost lands on public services and on the people who work in finance.
JP Morgan will go ahead with its new £3bn London headquarters, despite a tax rise on banks. The 3 million square foot tower in Canary Wharf will house about half of its 23,000 UK staff. The bank is still expected to file its planning application within months. The decision follows a budget that doubled the bank surcharge from 3% to 6% for 15 months. Jamie Dimon, the bank's boss, warned earlier this year that it could scrap the building if Britain turned "hostile" to banks. One bank executive called the tax "a punch in the face".
London's financial district has been nervous since Brexit. Banks moved thousands of jobs to Frankfurt, Paris and Dublin, and the City has fought to keep its place. The government wants bank taxes to help pay for public spending, but it also needs lenders to stay and invest. The surcharge is expected to raise only about £1.5bn, a small sum next to the budget's overall gaps. Investors welcomed what many called a "boring budget", and bank shares rose once the tax was confirmed as temporary. A JP Morgan spokesperson said targeting a lucrative sector "lacks principle".
Banks staying means jobs and tax money for Britain. If lenders leave, the cost lands on public services and on the people who work in finance.