Jamie Dimon, the chief executive of JP Morgan, has warned that the US banking giant could scrap 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 warning comes amid political instability surrounding Starmer's future, which has roiled bond markets and sent UK bank shares plunging.
JP Morgan's London Plans Under Threat
JP Morgan revealed plans last November to construct a tower in Canary Wharf, hours after lenders were spared tax hikes in Rachel Reeves's autumn budget following strong lobbying by the banking sector. Dimon stated that the bank could look past the current political instability but warned that the new HQ plans could be reversed if a new leader were to target lenders.
Speaking to Bloomberg TV during an interview in Paris, Dimon said construction plans would be threatened 'not by political instability, but if they become hostile to banks again.' He 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.'
Bank Taxes and Political Climate
Dimon 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 balance sheets. Despite praising Starmer as a 'smart guy' in the past, 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 the company has sought from the UK government. JP Morgan has requested a discount on business rates from Tower Hamlets council, despite reporting a net income of $57bn in 2025.
City Concerns Over Political Turmoil
The current political turmoil has also affected other parts of the City. An investment banking source told the Guardian that stock market flotations 'could be derailed' by a leadership fight. '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.'
The source added that there had been 'quite positive signals from the City' about Reeves's growth plans, so 'for anything to be derailed at this point would be damaging.' They warned against another messy leadership race, referencing the Conservative party's rotating cast of prime ministers.
