Two of Wall Street’s most powerful banks have unveiled major UK expansion projects just hours after being spared higher taxes in Rachel Reeves’s autumn budget.
The announcements from JP Morgan and Goldman Sachs signal significant long-term investment in Britain’s financial and technology sectors, providing what officials describe as a major boost to the UK economy.
JP Morgan revealed plans on Thursday to build a vast 3 million sq ft tower in Canary Wharf that will serve as its new UK headquarters, housing more than half of its 23,000-strong British workforce. The development, expected to cost around £3bn, will be one of the largest single corporate building projects in London.
Goldman Sachs followed with a separate announcement confirming it would expand its Birmingham office, hiring 500 additional staff and more than doubling its presence in the city. The bank said the move forms part of a broader investment strategy in technology and artificial intelligence.
The timing of both announcements has drawn attention, coming shortly after banks avoided a tax increase that had been widely expected ahead of the Budget. The sector had lobbied strongly against the rise, warning that a higher levy could restrict lending and undermine the benefits of recent regulatory reforms designed to stimulate economic growth.
Reports earlier in the week suggested the Treasury had asked major lenders to issue favourable statements about the Budget in exchange for being spared new tax measures. However, there is no evidence the investment plans were conditional on the Budget outcome.
In a press release responding to JP Morgan’s new tower project, Reeves said she was delighted with the decision, calling it a “multibillion-pound vote of confidence in the UK economy.” Speaking later on BBC Radio 4’s Today programme, she argued that the Budget had already begun to attract corporate investment and added: “Those companies can invest anywhere. They are choosing Britain because they liked what they heard in the budget yesterday.”
A source close to JP Morgan insisted the project was unrelated to any single fiscal event, explaining that the plans had been “in the works for months” and that the quieter US market environment during Thanksgiving made it an appropriate moment for the announcement.
JP Morgan’s chief executive Jamie Dimon emphasised the bank’s long-term commitment to London, saying: “London has been a trading and financial hub for more than a thousand years, and maintaining it as a vibrant place for finance and business is critical to the health of the UK economy.” He added that the new tower “will represent our lasting commitment to the city, the UK, our clients and our people,” noting that “the UK government’s priority of economic growth has been a critical factor in helping us make this decision.”
The bank estimated that the new headquarters will inject almost £10bn into the UK economy, taking into account construction costs, supply chains, business activity and long-term employment. The tower, whose height has yet to be confirmed, will be designed by British architectural firm Foster + Partners—the same architects behind JP Morgan’s newly completed global headquarters at 270 Park Avenue in New York. Construction is expected to take around six years.
The announcement also follows JP Morgan’s £350m investment earlier this year in expanding its Bournemouth campus.
Goldman Sachs said its planned expansion in Birmingham is part of wider efforts to scale up investments in digital infrastructure and artificial intelligence. A spokesperson said: “We are increasing our financing activities to critical parts of the economy where we see substantial opportunities to deploy capital, including in AI and digital infrastructure, with several billion pounds ready to be committed.”
The move reinforces the trend of global financial firms expanding operations beyond London, particularly in technology-focused roles.
