Jamie Dimon, chief executive of JP Morgan, has warned that the US banking giant could abandon plans to build a new £3bn headquarters in London if Keir Starmer is replaced by a Labour prime minister who is hostile to banks. The bank unveiled plans last November to construct a tower in Canary Wharf, shortly after lenders were spared tax hikes in Rachel Reeves’ autumn budget following intensive lobbying by the banking sector.
Political Instability and Bank Hostility
Dimon stated that the bank could look past the current political instability surrounding Starmer’s future, which has roiled bond markets and sent domestic bank shares plunging. However, he cautioned that the construction of the new headquarters, which will house more than half of JP Morgan’s 23,000 UK staff, could be reversed if a new leader were to target lenders. Speaking to Bloomberg TV in Paris on Tuesday, Dimon said the plans would be threatened “not [by] political instability, but if they become hostile to banks again.”
Extra Taxes and Fairness
Dimon added, “I’ve always objected to the fact … we paid probably $10bn in extra taxes by now. I don’t think that’s right or fair. If that happens too much we will reconsider.” It is understood he was referring to the UK’s decision to impose two sector-specific taxes on banks following the 2008 financial crisis: the bank surcharge on profits and the bank levy on certain balance sheet items.
Previous Praise and Conditions
Dimon has previously praised Starmer and Reeves, describing Starmer as a “smart guy” on Tuesday. However, JP Morgan stressed in November that the Canary Wharf tower plan would depend on “a continuing positive business environment in the UK.” Questions have been raised about financial inducements sought from the UK government, including a discount on business rates, according to Tower Hamlets council documents, despite JP Morgan reporting a net income of $57bn (£43bn) in 2025.
City Concerns Over Leadership Turmoil
The political turmoil has unsettled other parts of the City. One investment banking source told the Guardian that stock market flotations “could be derailed” by a leadership fight. The source noted that “if you’re planning for an IPO, for example, you need stability in the markets … There’s been talk of a number of IPOs coming down the track in the UK, and that gets derailed in situations like this.” They added that “quite positive signals from the City” about Reeves’ growth plans could be damaged, saying “the worst thing at the moment would be going through another messy leadership race,” referencing the Conservative party’s revolving door of prime ministers.
