Global banking giant JP Morgan Chase has announced plans for a new tower in London’s Canary Wharf, a move estimated to inject £10 billion into the City’s economy.
This significant investment coincides with rival US investment bank Goldman Sachs’ declaration that it will double its workforce at its Birmingham office.
These substantial commitments to their UK operations follow closely on the heels of the autumn Budget statement, where the banking sector notably avoided anticipated target tax increases.
Chancellor Rachel Reeves commented that banks are “choosing Britain because they like what they heard in the Budget”.
JP Morgan Chase, recognised as one of the world’s largest financial institutions, confirmed the new structure will span three million square feet and accommodate 12,000 employees.
The planned building will be more than double the floorspace of Britain’s current tallest building, The Shard in the City of London, with around 1.3 million square feet.
It would also cover more space than JPMorgan’s recently-completed 2.5 million square foot global headquarters on New York’s Park Avenue.
The development is designated as the firm’s UK headquarters and its most substantial footprint across Europe, the Middle East, and Africa (EMEA).
Construction is projected to span six years, commencing once all requisite approvals are secured, according to JP Morgan.
JPMorgan’s Chairman and CEO Jamie Dimon publicly supported UK finance minister Rachel Reeves’ budget on Wednesday, which spared banks from fresh taxes.
Chief executive Jamie Dimon said: “The UK Government’s priority of economic growth has been a critical factor in helping us make this decision.
“This building will represent our lasting commitment to the City, the UK, our clients and our people.”
JP Morgan said an independent study estimated the project could contribute about £9.9 billion to the UK economy over the next six years – taking into account the building work for the development.
The bank said London-based staff will work from the new tower once it is complete, and its office in the City – while it plans to “consider its options” for an existing Canary Wharf office.
Meanwhile, Goldman Sachs announced plans to grow its Birmingham office and double its workforce from 500 to over 1,000 in the “coming years”.
The banking group said it formed part of efforts to “deepen our commitment to the UK economy”.
Ms Reeves told BBC Radio 4 Today that “the fact that we delivered the Budget that I delivered yesterday is getting investments from some of the biggest companies in the world, here in the UK”.
“Those companies can invest anywhere they are choosing Britain because they like what they heard in the Budget yesterday,” she said.
Banks were spared from an increase to taxes on the industry in Wednesday’s Budget, after speculation that they were possibly in the firing line as Ms Reeves looked for ways to raise revenues.
Reports said earlier this week that Ms Reeves had instead asked the banks to express their commitment to the UK and the Budget.
