JP Morgan makes £10bn UK bet as banks dodge tax raid
JP Morgan is set to double down on the UK with plans to build its largest European presence through a new tower in Canary Wharf.
The US banking juggernaut said it intends to build a new 3m square feet tower in London, which will inject as much as £10bn over the next six years into the local economy.
The project is also expected to create an additional 7,800 jobs across construction and other local industries. Once finishes it will house up to 12,000 and serve as the bank’s main headquarters in UK and is biggest presence across Europe, the Middle East and Africa.
The banking giant said it already contributes near £7.5bn to the local economy and supports 38,000 jobs.
In October, the bank said it would invest over £300m into its Bournemouth campus, which will help facilitate a new building and upgraded facilities for the sites 5,300 employees.
The firm – which has operated in Bournemouth since 1986 – is the largest private sector employer in Dorset.
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As well as expanding its physical footprint, the firm said it will also introduce dedicated financing to key strategic areas across the UK including defence, aerospace and energy dependence.
Jamie Dimon, chairman and chief executive of JP Morgan said: “London has been a trading and financial hub for more than a thousand years, and maintaining it as a vibrant place for finance and business is critical to the health of the UK economy.
“This building will represent our lasting commitment to the city, the UK, our clients and our people. The UK government’s priority of economic growth has been a critical factor in helping us make this decision.”
Chancellor Rachel Reeves welcomed the news, as she touted her Autumn Budget – which included a £26bn tax raid across pensions, landlords and the wealthy – as “doubling down on growth”.
But the move does follow high anticipation banks would be subject to a tax raid, which was fiercely opposed by the industry. Top bankers warned it would harm that ability to invest in the UK and make the country less attractive on the global stage.
Reports had suggested ahead of the Budget that the Chancellor had urged banking bosses to publicly praise the bosses as they were spared from a cash raid.
Shobi Khan, chief executive of Canary Wharf Group: “[The new plans] marks a defining moment for Canary Wharf and underlines its position as the destination of choice for the world’s most ambitious and innovative companies. We continue to attract and retain the very best who are drawn to our vibrant community, unrivalled connectivity, and world-class amenities.
“2025 will be our best leasing year in over a decade.”