At JP Morgan’s New York headquarters, a celebration was held to honor King Charles, attended by 400 guests including Varun Chandra, the Prime Minister’s envoy. This event took place shortly before Rachel Reeves’s budget announcement, which included no new taxes for banks, easing concerns in the financial sector.
Days later, Jamie Dimon, head of JP Morgan, revealed plans for a new 279,000 sq meter tower in London’s Canary Wharf, contingent on sustaining a favorable business environment in the UK. The bank indicated that long-term strategic considerations are paramount, transcending any immediate budget impacts. This move follows the chancellor’s recent efforts to foster confidence among financiers and mitigate market apprehensions after a previous budget raised significant taxes.
The relationship between the Labour Party and the financial sector has shifted, moving towards a more accommodating stance, particularly in light of recent economic pressures. Labour has been working to rebuild trust among financial leaders following its last tax-raising budget, with some voices suggesting that the current government may not fully appreciate the role of entrepreneurship in economic growth. The financial services industry is pivotal, contributing about 10% to the UK’s GDP and employing over 1.2 million people.
Despite the budget’s provisions, some Labour members and voters express unease regarding the party’s ties to the banking sector, particularly in the context of public sentiment post-2008 financial crisis. Advocacy groups argue for a more stringent approach to banking taxes, highlighting public calls for transparency about the sector’s influence on political decisions.
Reeves had contemplated a windfall tax on banks to support public finances but ultimately abandoned this plan, reflecting the balancing act between governmental fiscal strategies and the demands of the financial sector. Meanwhile, banks report high profits amid rising interest rates, prompting discussions about their tax contributions in the broader economic landscape. The Treasury and JP Morgan have been approached for comments on these developments.
Source: https://www.theguardian.com/uk-news/2025/nov/28/city-cant-banks-rachel-reeves-jp-morgan-jp-morgan-goldman-sachs-budget