JPMorgan Chase chief executive Jamie Dimon has warned the Wall Street giant could reconsider its planned £3billion London headquarters if Britain adopts what he described as a hostile approach towards banks.
The most likely leadership contestants on the left, frequently cited in Westminster speculation, are Manchester mayor Andy Burnham and former Deputy Prime Minister Angela Rayner.
Speaking to Bloomberg TV on Tuesday, Mr Dimon said political instability alone would not derail the company’s investment plans in the capital.
He said that any return to anti-banking policies could force the lender to rethink the development.
“Not political instability but if they become hostile to banks again, yes.”
The JPMorgan boss also criticised what he believes has been unfair treatment of the banking sector in Britain since the financial crisis.
Mr Dimon added: “I’ve always objected to the fact, we didn’t damage the UK in any way, we 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.”
The warning comes as political tensions continue to grow within Westminster amid speculation surrounding Sir Keir Starmer’s leadership and future economic policy under Labour.
Greater Manchester mayor Andy Burnham and Deputy Prime Minister Angela Rayner, both viewed by some as potential future leadership contenders, have previously supported higher taxation and increased public spending.
Jamie Dimon warns JPMorgan could abandon £3billion London HQ over Labour bank tax fears
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A group of 100 Labour MPs led by former transport secretary Louise Haigh has also reportedly urged the Government to pursue a more left-wing economic direction.
In a leaked memo, Ms Rayner proposed increasing the banking surcharge from three per cent to five per cent as part of wider revenue-raising measures.
Financial markets reacted nervously to the political uncertainty on Tuesday, with shares in Lloyds, NatWest and Barclays falling amid concerns over the prospect of further tax increases targeting the banking sector.
Analysts at investment bank Jefferies said last week that an increase in the banking surcharge now appeared more likely than not.
JPMorgan first unveiled plans for its new Canary Wharf headquarters last November, one day after Chancellor Rachel Reeves delivered her Budget, which largely avoided imposing additional taxes on major lenders.
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The proposed development would cover around three million square feet and become one of the largest office schemes in Europe.
The tower is expected to accommodate up to 12,000 employees and received planning approval in April.
Once completed, the skyscraper would become London’s third-tallest building behind The Shard and 22 Bishopsgate.
JPMorgan estimates the six-year construction project would contribute approximately £10billion to the local economy and create around 7,800 jobs.
Despite the investment plans, the bank has consistently stressed that the project remains dependent on maintaining what it described as a positive business environment in the UK.
The Treasury had previously discussed offering the company a business rates discount worth up to 100 per cent as part of efforts to secure the investment.
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Banking industry leaders have repeatedly argued that lenders in Britain already face significantly higher tax burdens than rivals operating in other major financial centres.
According to industry body UK Finance, banks operating in Britain faced an overall tax rate of 46.4 per cent last year.
The organisation said this compared with 27.9 per cent in New York and 38.9 per cent in Frankfurt.
Barclays chief executive CS Venkatakrishnan also raised concerns over the issue last month.
Mr Venkatakrishnan said: “Banks in the UK are more highly taxed than they are in other major jurisdiction”.
Many of the current banking levies were introduced following the 2007 to 2009 financial crisis, including a balance sheet levy announced in the 2010 emergency Budget and a corporation tax surcharge on lenders’ profits introduced in 2015.