London (Business Emerge), September 5: British banks are ramping up their efforts to oppose potential tax increases, as the Labour government gears up for its first budget next month. The banking industry is worried that the government might turn to the sector to support the country’s public finances, according to high-level insiders. While Prime Minister Keir Starmer and Finance Minister Rachel Reeves haven’t explicitly stated that banks will face higher taxes, recent comments from Starmer about those with “broader shoulders” bearing more responsibility have raised concerns within the industry, sources confirmed.
In recent years, banks have reported significant profits, benefiting from rising interest rates. Reeves is scheduled to meet with key banking representatives in the coming days, where many in the industry expect the possibility of increased taxes on bank profits to be discussed, two insiders indicated. Another source mentioned that Jamie Dimon, CEO of JP Morgan Chase, is scheduled to meet with Reeves in London on Wednesday, as part of a pre-arranged engagement.
Britain is a key location for JP Morgan Chase, hosting one of its largest operations outside the United States. Although the Treasury spokesperson declined to comment on speculations surrounding potential tax changes before an official fiscal event, no immediate response was provided regarding Reeves’ discussions with Dimon. Insiders, who wished to remain anonymous due to the sensitivity of the issue, believe the Treasury may raise the current surcharge banks are already required to pay.