JP Morgan Approves £3bn London Tower Following UK Assurances
The chair and chief executive of JP Morgan Chase, Jamie Dimon, has approved a new £3 billion tower in London, which will serve as the bank’s UK headquarters. This decision followed a visit by Varun Chandra, a business envoy for UK Prime Minister Keir Starmer, to New York, where he provided assurances regarding the UK government’s commitment to pro-business policies.
The announcement came shortly after the bank, alongside Goldman Sachs, revealed significant investment plans in the UK. These plans were made public just hours after the UK government unveiled a budget that spared banks from tax increases, despite widespread lobbying from the sector. The decision to greenlight the new headquarters was finalized on November 24, 2023, after Chandra’s trip to meet with Dimon.
Chandra’s New York visit coincided with a broader discussion about fiscal policy, particularly as the UK’s Chancellor announced £26 billion in tax increases while avoiding higher levies on banks. Reports indicated that the UK Treasury had requested the banking sector to issue supportive statements regarding the budget prior to Chandra’s departure.
The new headquarters will occupy 3 million square feet in Canary Wharf and is expected to house more than half of JP Morgan’s 23,000 employees in the UK. The bank has emphasized that the project’s viability hinges on a “continuing positive business environment in the UK.” A UK official noted that the investment would likely not have been announced if the budget had been perceived as “anti-prosperity and anti-financial services.”
Dimon cited the UK government’s focus on economic growth as a crucial factor influencing the investment decision. In a statement regarding the tower, Rachel Reeves, the UK Shadow Chancellor, expressed her enthusiasm, calling it a “multibillion-pound vote of confidence in the UK economy.” The bank estimates that the new headquarters could contribute around £9.9 billion to the UK economy over the next six years.
Chandra’s visit was reportedly connected to a British embassy event celebrating King Charles III’s birthday, which JP Morgan hosted. Although the King did not attend, the gathering served as a backdrop for discussions with Dimon. A source familiar with JP Morgan’s plans indicated that the decision to invest in a new headquarters was a long-term strategy, rather than a response to any specific budget announcement.
Historically, the UK Treasury had contemplated increasing the bank levy to enhance revenue, particularly after opting against raising income tax rates. Currently, banks in the UK are subject to a 28% corporation tax, which exceeds the standard rate of 25%, in addition to a separate levy on their balance sheets.
In a related move, Goldman Sachs announced plans to expand its Birmingham office, creating 500 new jobs, which would more than double its workforce in the UK’s second-largest city. JP Morgan declined to comment further on its new headquarters announcement.
