JPMorgan boss Jamie Dimon says a new Canary Wharf HQ would be put at risk if the UK becomes hostile (Image: Getty)
JPMorgan’s boss has threatened to pull the plug on a new £3billion headquarters in London if Sir Keir Starmer is replaced by a new PM “hostile to banks”. The giant investment bank unveiled plans to build in Canary Wharf last November.
Chief Executive, Jamie Dimon, told Bloomberg TV building plans would not be risked by political instability in Britain but will be “if they become hostile to banks again”. He told the news outlet: “I’ve always objected to the fact we didn’t damage the UK in anyway. We [have] paid probably $10billion in extra taxes by now. I don’t think that’s right or fair. If that happens too much, we will reconsider.”
READ MORE: Labour lefties ‘plotting to get rid of Wes Streeting as PM’
READ MORE: UK pottery giant collapsed into administration after 217 years – huge sale
According to JPMorgan, a new office in Canary Wharf would boost the local economy by £9.9bn and generate 7,800 jobs.
The new HQ plan was unveiled by the bank a day after banks were more or less spared from measures announced by Chancellor Rachel Reeves in the Budget.
News of Mr Dimon’s apparent warning comes as markets react to turmoil in Downing Street as Prime Minister Sir Keir Starmer defies calls for him to quit in the wake of Labour’s disastrous local election results.
More than 80 of Labour’s 403 MPs have now called for Sir Keir to quit immediately, or to set out a timetable for his resignation, including some ministers.
Speculation over the PM’s future caused economic carnage with the yield on UK 10-year gilts trading at 5.10% on Tuesday, up from 5.01% the day before.
Banks sold off, amid reports of a possible windfall tax on the sector should there be a change at the top of the Government.
JPMorgan’s banking team said: “Banks narrowly avoided a higher tax rate at the last budget, but our base case now assumes the UK banking surcharge to increase from 3% to 5%.”
The pound fell to 1.3505 dollars on Tuesday afternoon from 1.3651 dollars on Monday. Against the euro, sterling was lower at 1.1517 euros from 1.1584 euros on Monday.
Shadow Chancellor Sir Mel Stride said markets can see Sir Keir is weak and lurching leftwards to placate backbenchers. He warned Sir Keir could soon be replaced by rivals who want to borrow, tax and spend even more.
Neil Wilson, Saxo UK’s investor strategist, raised the prospect of further market volatility and a mounting gilt rout until clarity over Britain’s leadership is achieved.
He added: “A leftwards lurch would raise hackles among bond vigilantes at a time when the fiscal position is already fragile, and risks are rising due to rising inflation from soaring energy prices and weaker growth outlook for the economy.
“In the event of a new leadership ticket there is a risk of additional government spending on cost-of-living measures, such as support for rising energy bills, increased minimum wage, benefit uprating and a rental freeze, among a range of potential help mechanisms.
“It would be a toxic combination for gilts – higher spending, lower growth and inflation becoming embedded.”