JP Morgan and Goldman Sachs signal major UK expansion after budget reprieve

Two leading Wall Street banks have unveiled significant expansion plans in the United Kingdom. JP Morgan has announced the construction of a new three million square foot tower in Canary Wharf, which will become its new UK headquarters. The development is projected to accommodate over half of the bank’s 23000 UK-based employees and is expected to cost approximately £3 billion. In total, JP Morgan estimates that the project will contribute nearly £10 billion to the UK economy, factoring in construction costs, supply chains, business activity and employment generated by the initiative.

Goldman Sachs has also revealed it will expand its presence in Birmingham, committing to hire an additional 500 staff. This move will more than double the firm’s workforce in the city and forms part of Goldman’s wider investments in technology and artificial intelligence. Both banks announced their plans within hours of the Chancellor’s autumn budget, which stopped short of raising taxes on the financial sector after strong lobbying from major lenders.

Rachel Reeves, Chancellor of the Exchequer, expressed her approval, describing JP Morgan’s decision as a multibillion pound vote of confidence in the UK economy. She emphasised that the recently delivered budget had created an environment favourable for large-scale investment, citing the banks’ decisions as evidence that global firms remain drawn to Britain.

A source close to JP Morgan clarified that the decision to invest in a new headquarters had been under consideration for months and was not solely a response to the details of the budget. The announcement coincided with the Thanksgiving holiday period in the United States, resulting in a quieter moment on Wall Street and providing the bank with an opportunity to make its plans public.

Jamie Dimon, chair and chief executive of JP Morgan, reaffirmed the bank’s commitment to London as a global financial hub. He noted the importance of maintaining the capital’s vibrancy and stressed that the government’s focus on economic growth was instrumental in influencing the decision. British architecture firm Foster and Partners will design the new headquarters, following their recent completion of JP Morgan’s global headquarters in New York.

Goldman Sachs said its Birmingham expansion aligns with the bank’s ambitions in financing technology and digital infrastructure nationwide. The bank indicated it is prepared to commit several billion pounds to sectors offering substantial economic opportunities. Last month, JP Morgan also announced a £350 million investment in its Bournemouth campus, consolidating its long-term strategic commitment to the UK.