(May 13): Jamie Dimon warned the UK that any move to hike taxes on banks in the event Keir Starmer is replaced as the UK’s prime minster would see JPMorgan Chase & Co scrap plans to invest billions in a new London headquarters in Canary Wharf.
Dozens of Labour members of Parliament and a handful of ministers have called for Starmer to resign after his party suffered bruising losses in the UK’s local elections last week. Asked if JPMorgan would review its plans for the new office in light of political instability that’s followed, Dimon was unequivocal.
“Not political instability but if they become hostile to banks again, yes,” Dimon said in an interview with Bloomberg TV on Tuesday at JPMorgan’s annual Global Markets Conference in Paris. “I have always objected to the fact, we didn’t damage the UK in any way, we paid probably US$10 billion ($12.7 billion) in extra taxes by now. I don’t think that’s right or fair. If that happens too much we will reconsider.”
Bond markets have reacted sharply to the prospect of Starmer’s ouster over fears his replacement could oversee a leftward lurch in the government’s position involving higher taxes and more government spending.
JPMorgan unveiled plans to build what will be London’s largest office in the east London financial hub in late November, a day after Chancellor Rachel Reeves unveiled a Budget that largely spared banks.
The office will span about three million square feet of gross area and host as many as 12,000 employees. Including the cost of construction, the six-year project will contribute GBP9.9 billion (US$13.4 billion or $17.0 billion) to the local economy and create 7,800 jobs, according to the bank.
See also: HSBC drags feet on US$4 bil private credit investment effort
Dimon has previously praised both Starmer and Reeves. On Tuesday, the chief executive officer said Starmer is a “smart guy”.
His comments come as Ken Griffin tussles with New York Mayor Zohran Mamdani. The Citadel founder is vowing to make the hedge fund’s planned Miami tower even larger after Mamdani called him out by name in a pledge to raise taxes on second homes in New York.
Uploaded by Tham Yek Lee
