Jamie Dimon, chief executive of JPMorgan, delivered a cautious endorsement to the newly formed UK government while warning that the country’s attractiveness to business hinges on the policies the new prime minister and chancellor adopt.
He emphasized that the chancellor must implement growth‑driving measures, expressing a desire for the government to get the policy mix right after a series of perceived missteps. This stance has resonated with small and medium‑sized enterprises that are already bracing for the impact of upcoming decisions.
Andy Burnham, who took office from Sir Keir Starmer, pledged a “new political and economic model” aimed at fostering lasting, inclusive growth. The response to Dimon’s comments will be closely watched by businesses across the country.
John Healey has been selected as chancellor, succeeding early favourites, and Burnham has promised immediate cost‑of‑living relief and a potential increase in the income‑tax threshold, which had remained unchanged since 2021.
Burnham’s fiscal strategy relies on funding day‑to‑day spending from tax revenue within three years, yet the ongoing conflict in the Middle East has potentially narrowed the available headroom from £23.7 billion to £10 billion. Every fiscal concession will therefore carry a direct cost.
Dimon singled out the balance‑sheet tax, introduced after the global financial crisis, as a lingering injustice. He argued that JPMorgan has not harmed the UK, noting the bank’s employment, training, and investment commitments in the country.
He questioned the fairness of a tax that has cost shareholders approximately $5 billion over seventeen years, suggesting that such levies could produce adverse outcomes for the broader financial sector.
When asked about the possibility of raising the levy, Dimon indicated that he would not make an absolute decision but would evaluate its implications for the bank’s planned £3 billion UK headquarters and related projects.
The £3 billion construction effort would benefit a wide range of suppliers, contractors, and service providers, illustrating how tax policy toward large investors can influence the wider small‑business ecosystem.
Dimon also praised the former Treasury Secretary for her fiscal prudence, noting that her successor inherits both goodwill and a limited fiscal cushion, and that a prominent banker hopes to use that space wisely.
