A bank tax and higher rates on skyscrapers could both hit JPMorgan's Canary Wharf tower
Jamie Dimon has said he could reconsider JPMorgan's Canary Wharf tower if the UK turns hostile to banks, an investment projected to add up to £10bn. The £10bn is a six-year estimate of local impact; the tower itself is put at £3bn.
The Board Room · Leadership desk
Key figures for JPMorgan's Canary Wharf tower: 7,800 additional industry jobs predicted; as much as £10bn injected into the local economy over the next six years; the tower is a £3bn project.
| Figure | Value | Note | Claim |
|---|---|---|---|
| Industry jobs the project is predicted to create | 7,800 jobs | 4 | |
| Injected into the local economy, as much as | £10bn | projected, over the next six years | 3 |
| Tower project | £3bn | 5 |
What happened
- New Guardian reports suggest Chancellor John Healey has decided to target banks to raise cash for the Treasury, City AM says.
- Healey is also weighing higher business rates on expensive office blocks, a change that would raise £1bn and fall disproportionately on Canary Wharf.
- A council report says the government warned Tower Hamlets Council that JPMorgan was "unlikely to progress" the tower without "clarity and certainty" on its tax bill.
- One floated option would exempt the UK arms of international banks from any tax change, and Dimon has said that would "wouldn't be fair" and "lack principle".
Why it matters
- What doesn't add up contradiction One government is weighing a rates rise that lands hardest on Canary Wharf while telling the local council that the tower needs tax clarity to go ahead.
- Who has to decide decision The Treasury has to choose between a bank tax with a wide base and a shield for foreign banks, and Dimon has already called the shield unfair, so it cannot be counted on to win him over.
- Who's exposed exposure The projected 7,800 industry jobs and workplaces for 12,000 staff are attached to a project City AM describes as left in uncertainty.
The £10bn needs a careful reading before it is treated as the sum at risk. City AM describes it as the amount the investment is projected to inject into the local economy over six years [3], and it puts the tower itself at £3bn [5]. On those figures the projected local impact is about 3.3 times the build cost [15] and about £1.7bn a year [16]. A retreat by JPMorgan would cost the UK that estimated activity, while the bank would avoid a £3bn build.
Dimon's remarks predate the current Chancellor. He warned before John Healey entered the Treasury that some factors could make him "reconsider" the investment [1]. Pressed on whether Sir Keir Starmer's departure and the Westminster upheaval would prompt a review, Dimon responded: "Not political instability but if they become hostile to banks again, yes" [2]. In July he said he would not commit to a "binary" decision on the project [7]. He told the Master Investor podcast: "I mean it may sound great, 'tax the banks', but it's $5bn that my shareholders paid on that extra tax," adding "I just think things like that have adverse consequences" [6].
The counterweight in City AM's reporting is a source close to the talks, who said tax chatter remained general, not specific to the UK and not linked to JPMorgan's plans for the tower [11]. That limits how far the story can be pushed today: the bank has stated a condition, and no negotiation over the tower has been reported. The rates track is further along. JPMorgan has sought a business rates waiver of up to 100 per cent, and City AM previously revealed that red tape was holding up a key approval for the tower [14]. In our view the rates measure has a more direct line to the tower than a bank tax does, because the waiver request is already in progress.
The tower's origins show how far the terms have moved. The plans were announced in the 24 hours after Rachel Reeves's second, and last, Budget, in which banks were spared £26bn worth of tax hikes [10]. JPMorgan declined to comment [12], and we do not know yet at what point Dimon would act on his condition. In our view the tower is a live test with no result: it has one conditional statement from the bank's chief executive, one unresolved approval and one newspaper report of the Treasury's intent. If the Treasury moves on banks this quarter, we'd expect the first visible answer next quarter to come through the rates waiver, since that is the only decision on the tower already in motion.
What to watch
- Whether the Treasury taxes banks across the board or exempts the UK arms of international banks, an option Dimon has called unfair.
- Whether the Chancellor goes ahead with the business rates rise on expensive office blocks that would raise £1bn.
- Whether the business rates waiver JPMorgan has sought, up to 100 per cent, is granted.
Clarity's read
What the record supports and how the coverage leans. The claims behind it follow.
Reality
- Evidence50
- Adoption
- Not scored
- Hype gap+15
- Incentives55
- Confidence50
Claim ledger
Ranked by verification strength, evidence, and original report placement.
- [1]
Before Healey entered the Treasury, Dimon warned there could be factors that make him "reconsider" the investment in the new Canary Wharf headquarters.
- [2]
Asked whether the departure of former Prime Minister Sir Keir Starmer and Westminster upheaval would cause a review of the plans, Dimon responded: "Not political instability but if they become hostile to banks again, yes."
- [3]
The JPMorgan investment is projected to inject as much as £10bn over the next six years into the local economy.
- [4]
The JPMorgan project is predicted to create an additional 7,800 industry jobs and house 12,000 staff.
- [5]
The JPMorgan tower is a £3bn project.
- [6]
Dimon told the Master Investor podcast in July: "I mean it may sound great, 'tax the banks', but it's $5bn that my shareholders paid on that extra tax," adding "I just think things like that have adverse consequences".
- [7]
Dimon said in July he would not commit to a "binary" decision on the future of the project.
- [8]
One option floated recently is to exclude the UK operations of international banks from any tax changes to avoid damaging overseas investment; Dimon has said such a move "wouldn't be fair" and would "lack principle".
- [9]
According to a council report, the government has warned Tower Hamlets Council that the bank was "unlikely to progress" the project "without clarity and certainty" on its tax bill.
- [10]
The tower plans were announced in the 24 hours after Rachel Reeves's second, and last, Budget, in which banks were spared from £26bn worth of tax hikes.
- [11]
A source close to the talks said tax chatter between Dimon and the Chancellor remained general, and not specific to the UK, nor linked to JPMorgan's plans for the tower.
- [12]
JPMorgan declined to comment.
- [13]
John Healey is the Chancellor.
- [14]
JPMorgan has sought a business rates waiver of up to 100 per cent, and City AM previously revealed that red tape was holding up a key approval for the tower as the bank sought the exemption.
- [15]
The projected £10bn local impact is about 3.3 times the £3bn tower cost.
- [16]
The projected £10bn over six years is about £1.7bn a year.
- [17]
New reports from The Guardian suggest the Chancellor has decided to target the banking sector to raise cash for the Treasury.
- [18]
The Chancellor is weighing an increase to business rates for expensive office blocks and skyscrapers that would raise £1bn for the Treasury but disproportionately hit the capital's business districts, especially Canary Wharf.
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Sources
1 independent publisher whose own reporting we read for this story.
- cityam.comWhat could a bank tax raid mean for JP Morgan’s Canary Wharf mega-tower?
1 article · October 16, 2026
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