JP Morgan boss threatens to scrap London HQ plans for 12,000 staff if Labour lurches to the Left
The boss of America’s biggest bank has threatened to abandon plans to build a new skyscraper in London if the government moves left.
Jamie Dimon has said he will review JP Morgan’s plans to build a new skyscraper in Canary Wharf if the tax bill is ‘too much’.
The warning comes as the Prime Minister’s future remains uncertain and there are growing calls for his resignation. This, along with higher taxes on banks, could trigger a shift to the left.
Last November, JP Morgan announced plans to build a new tower that is expected to cost £3bn to build and will house 12,000 employees. The bank claims it will contribute £9.9bn to the local economy.
Dimon told Bloomberg TV he would review plans for a new headquarters in London ‘if they turn on the banks again’.
‘I’ve always objected to the fact that we’ve done no harm to the UK, we’ve probably paid $10 billion in extra tax so far. I don’t think this is right or fair. If this becomes too much we will re-evaluate.’
JP Morgan boss Jamie Dimon previously threatened to withdraw investment from the UK
The bank said in November that the Canary Wharf plan would ‘depend on the continuing positive business environment in the UK’.
High-profile figures on the Labor left have agitated for increased taxes on banks after Rachel Reeves avoided any increases to lenders in her last election. Budget.
Former Deputy Chancellor Angela Rayner had previously called for the banking surcharge to be increased from 3 per cent to 5 per cent.
City analysts have raised concerns about what a change in Labor leadership would mean for the UK’s fiscal rules.
Borrowing costs have recently risen to a 28-year high.
The rise in long-term gold yields reveals the market’s uneasiness about a change in leadership that is likely to increase tax hikes and debt-financed spending.
This is not the first time Dimon has threatened to pull investment from the UK.
Ahead of the Brexit referendum, he warned that the bank could cut up to 4,000 jobs if the country decided to leave Europe. There were no job losses following the vote.
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