Global banking giant JPMorgan Chase has announced plans for a new tower in London’s Canary Wharf, a move it is estimated will inject £10bn into the City’s economy.
This significant investment coincides with rival US investment bank Goldman Sachs’ declaration that it will double the workforce at its Birmingham office.
These substantial commitments to UK operations follow closely on the heels of this week’s Budget, where the banking sector notably avoided anticipated tax increases.
Chancellor Rachel Reeves commented that banks are “choosing Britain because they like what they heard in the Budget”.
JPMorgan Chase, recognised as one of the world’s largest financial institutions, confirmed that the new structure will offer 3 million sq ft of floorspace and accommodate 12,000 employees.
The planned building will have more than double the floorspace of Britain’s current tallest building, the Shard in the City of London, whose floorspace measures around 1.3 million sq ft.
It would also cover more space than JPMorgan’s recently-completed 2.5 million sq ft global headquarters on New York’s Park Avenue.
The development will be the firm’s UK headquarters, and will represent its most substantial footprint across Europe, the Middle East, and Africa (EMEA).
Construction is projected to take six years, commencing once all requisite approvals are secured, according to JPMorgan.
The firm’s chair and CEO Jamie Dimon publicly supported Ms Reeves’s Budget on Wednesday, which spared banks from fresh taxes. Mr 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.”
JPMorgan said an independent study had estimated that the project could contribute about £9.9bn to the UK economy over the next six years – taking into account the building work for the development.
The bank said its London-based staff would work from the new tower once it is complete, and from its office in the City – while it plans to “consider its options” in respect of an existing Canary Wharf office.
Meanwhile, Goldman Sachs announced plans to grow its Birmingham office and double its workforce from 500 to more than 1,000 in the “coming years”.
The banking group said this forms part of its efforts to “deepen our commitment to the UK economy”.
Ms Reeves told BBC Radio 4’s Today programme that “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.
The banking sector was spared an increase in taxes in Wednesday’s Budget, after speculation that the industry was possibly in the firing line as Ms Reeves looked for ways to raise revenue.
Reports earlier this week suggested that Ms Reeves had instead asked the banks to express their commitment to the UK and the Budget.
