The chief executive of JP Morgan has cautioned Andy Burnham's government against raising taxes on banks, warning that such measures could threaten the company's planned £3bn London headquarters development and drive investment elsewhere. Dimon, whose bank approved the Canary Wharf project after the previous budget spared the sector from increased taxation, suggested he would reconsider this substantial commitment if the new government pursued more aggressive banking sector taxation.

The UK banking industry already operates under a higher tax burden than most sectors, with banks paying a 28 per cent corporation tax rate alongside separate levies on UK balance sheets. Trade unions have campaigned for additional taxation increases on banks, arguing this could generate billions in government revenue over several years, whilst Dimon contends that uncompetitive tax regimes encourage companies to relocate to more favourable jurisdictions.