Jamie Dimon meets Chancellor Healey ahead of October Budget

Jamie Dimon, the chief executive of JP Morgan, is scheduled to meet John Healey in London today. The discussion will take place ahead of the new Chancellor’s first Budget, which is set for 28 October. This face-to-face meeting follows a telephone exchange between the two men last month, marking their first in-person conversation since Healey assumed office.

The timing of the meeting coincides with preparations for a major fiscal event where Healey is expected to address reduced fiscal headroom. The economic impact of the US-Iran war has contributed to this situation. Some economists have predicted that the £23.6bn in surplus left by his predecessor, Rachel Reeves, at last year’s Budget could be halved. This potential reduction is attributed to a rout in global bond markets that has increased the cost of borrowing. The meeting also occurs amid concerns that Healey and Andy Burnham may introduce significant tax increases on the UK banking sector.

During their August phone call, which was initiated by the Chancellor’s team, Dimon is understood to have stressed the importance of getting public policy right to solve economic problems. The call was one of several industry leaders who spoke with Healey that week. The financial services sector has launched a defensive campaign ahead of the Budget, responding to lobbying by campaigners and left-wing politicians for higher taxes. UK Finance, the industry body, has written to Healey to warn against targeting the sector. David Postings, the body’s boss, stated that banking supports the economy by providing credit to households and SMEs and acting as a gateway to global markets. He added that the debate must recognise the sector’s tax contribution and the need for sustainable profitability. Dimon, whose pay package is $43m, has previously cautioned against sector-specific levies. In July, he warned that such taxes would have adverse consequences. In May, he stated that JP Morgan could withdraw its £3bn skyscraper investment if the government became hostile to banks.