JPMorgan Chase CEO Jamie Dimon told Bloomberg that any move to raise taxes on banks if Keir Starmer is replaced as British prime minister would result in the bank potentially abandoning plans to invest billions of dollars in its new headquarters in London.
British Prime Minister Keir Starmer resisted calls for his resignation on Tuesday, but the pressure remains.
See also: His government hangs in the balance. Britain in political chaos
Political crisis in Great Britain. JPMorgan sets a condition
JPMorgan announced late last year that it would build a new 3 million square foot skyscraper in London's Canary Wharf. The office building will accommodate up to 12,000. employees and serve as the company's UK headquarters. Construction is expected to take six years, during which time JPMorgan will also renovate its existing building on London's Bank Street.
In an interview with Bloomberg in Paris, the president of the largest American bank said that although the change at the top of power will not change JPMorgan's fundamental strategy, it may force the company to rethink its future in the British capital.
See also: British government on the brink. There is a significant reaction from the markets
The collapse of the British government may hurt banks
At the time of announcing the investment, JPMorgan said that its plans for the new building were “dependent on the continued positive economic situation in the UK and obtaining the necessary consents and agreements at national and local levels.”
Asked whether political instability in the UK had changed his view on the London megaproject, Dimon replied that if the new government was “hostile towards banks, then yes.”
Dimon criticized the tax burden the bank already faces in the UK.
UK banks are bracing for potential tax rises as pressure mounts on Prime Minister Keir Starmer. Analysts and industry representatives have suggested there could be a “tax raid” if the current prime minister is replaced by a more left-wing successor from the Labor Party.
Keir Starmer under pressure
JPMorgan currently employs over 20,000 people. people in Great Britain, of which 13 thousand in London. In November, the bank said its office construction and modernization projects would contribute around £9.9 billion ($13.4 billion) to the British economy and create more than 7,800 jobs over the next six years. It is estimated that the bank's current operations in London will contribute £7.5 billion annually to the local economy.
Starmer's leadership hangs in the balance after his party's poor performance in last week's UK local elections led to widespread demands for his resignation from MPs.
Source: CNBC
