Dimon Warns UK Chancellor Against Higher Bank Taxes

JPMorgan Chase Chief Executive Jamie Dimon has warned Chancellor John Healey against increasing taxes on the banking sector ahead of the government's first Budget, arguing that higher levies could drive jobs and investment away from the United Kingdom. The intervention, which took place during a phone call last week, comes as the Treasury faces pressure to find new revenue to fund cost-of-living measures and other spending priorities.

According to people briefed on the conversation, Dimon told Healey that higher taxes often result in jobs being driven elsewhere. He cited a material decline in finance roles in New York, which he attributed in part to that city's tax burden. The Wall Street executive also made clear that a windfall levy on bank profits or wider tax rises on wealth would be unwelcome, the sources said. Another person familiar with the exchange added that Dimon told the Chancellor the only way to solve the UK's economic challenges was through good policy that encourages growth, and that his comments on tax were not specific to the UK.

The call was described as very cordial and was initiated at the request of Healey's team. Dimon was among the first bank chiefs to...