'The City can't be taken for granted': how banks won over Rachel Reeves

Labour's pro-business stance has been reinforced by a series of high-profile meetings with City financiers and industry leaders. The most recent example is Jamie Dimon, the boss of JP Morgan, who hosted a birthday celebration for King Charles at its new Manhattan headquarters. Despite being in the US, the king was not invited, but Varun Chandra, the prime minister's envoy, was among the 400 guests to reassure the JP Morgan boss of Labour's pro-business stance.

The meeting came just days before Rachel Reeves' budget, which aimed to soothe business fears and bond market jitters. Although banks were spared a tax rise in the budget, Dimon unveiled plans to build a £3bn tower in London's Canary Wharf district, with conditions attached. The bank sees itself as critical to the government's growth mission, contributing almost 10% of UK GDP and employing 1.2 million people.

Labour has been rolling out the red carpet for Wall Street and City financiers in an effort to woo bankers and company bosses after a pre-election love-in turned sour. However, critics say the party's proximity to the boardrooms of the Square Mile does not sit comfortably with its own MPs and voters, who are still reeling from the 2008 financial crisis.

The city has won a prized status in government, amid fierce lobbying efforts to ensure it remains one of the few off-limits sectors. Norman Blackwell, a former chair of Lloyds Banking Group, says Reeves has "work to do" to rebuild confidence with City leaders after her £40bn tax-raising budget. Blackwell believes Labour's pro-business stance is far from convincing and that the party needs to do more to address concerns about wealth creation in the economy.

The chancellor's failure to levy a windfall tax on banks in the budget has been seen as a major missed opportunity. Sara Hall, co-executive director at Positive Money, says it's "very concerning" that while the public is asked to contribute more to fix public services, banks got off scot-free. She argues that there needs to be a proper public conversation about the sector's lobbying and influence.

The episode highlights how financial services has become a prized asset for Labour, with Goldman Sachs boss David Solomon advising Reeves against increasing bank taxes just days before the budget. The fact that Solomon ripped up his briefing notes to focus exclusively on the issue has been cited as evidence of the city's growing influence over government policy.

Despite this, bankers have still managed to rake in record profits, benefiting from rising interest rates and quantitative easing. Positive Money estimates banks made £24.1bn in the first half of 2025 alone, amounting to almost £1bn a week. The TUC has called for banks to use their bumper profits to pay a bit more in tax to invest in public services.

In conclusion, Labour's pro-business stance has been reinforced by its high-profile meetings with City financiers, but critics argue that the party needs to do more to address concerns about wealth creation and lobbying influence.

omg lol so labour is literally trying 2 win over wall st and city financiers but like, ppl r still questioning if it's all good rachel reeves' budget was supposed 2 soothe biz fears but instead, banks are just buildin a £3bn tower in london wth? & dont even get me started on the tax thing,£40bn is just crazy positive money needs 2 make some noise abt this tho

I don't get why labour is all about pleasing the city when they should be focusing on helping people like me who can barely make ends meet . Those bankers are raking it in while everyone else is struggling, and now they're getting a free pass from labour? It's just not right . I mean, what's £3bn tower for Canary Wharf gonna do for the average person? Just more gentrification and price hikes on already overpriced flats . And don't even get me started on Reeves' budget - a tax rise for everyone else but not for banks? No thanks . Labour needs to get its priorities straight and stop being a puppet for the city .

omg u guys idk wut labour is even doin rn they're literally just groveling 2 rich bankers & financiers like jpmorgan's dimon lol what's wrong w/ them?? the fact that they didn't levy a windfall tax on banks in the budget tho was like, total missed opportunity i mean, yeah Dimon got invited to party @ king charles birthday but who cares about that when ppl r still struggling financially?? & what's w/ the chancellor not listening 2 critics like blackwell & sara hall?? they gotta do more than just kiss up 2 rich ppl can't wait 4 the next election tho

I gotta say, I'm super concerned about this whole situation . It seems like Labour is being super accommodating to the banking industry and it's not sitting well with a lot of people . I mean, we just came out of the 2008 financial crisis and yet here we are again, bailing out banks and giving them tax breaks . Meanwhile, public services are still struggling and we're being asked to contribute more through taxes .

I think it's time for Labour to take a closer look at its pro-business stance and consider the impact it has on everyday people . We need politicians who truly represent our interests, not just those of the wealthy elite . I'd love to see some real changes in the budget that prioritize public services over corporate profits .

It's also really worrying that the banking industry is having such a huge influence over government policy . It feels like we're living in a world where corporations have more power than governments, and it's not okay . We need to hold our politicians accountable for making decisions that benefit the people, not just the banks .

the thing is, labour's trying to play nice with city financiers, but it just feels like they're trying too hard . all these high-profile meetings and birthday celebrations? it's getting old fast . what really needs to happen is for them to have a more in-depth conversation about the issues that matter to the regular folks, not just the 1% who run the banks .

i'm not saying labour can't be pro-business, but they need to find a way to balance that with making sure the rest of us aren't getting left behind . and honestly, £3bn tower in Canary Wharf sounds like a sweet deal for JP Morgan, but where's the investment in public services?

and let's not forget about the bankers' profits - £24.1bn in just six months? that's insane . it's time for them to put their money where their mouth is and pay a bit more tax . labour's got some work to do if they want to be seen as truly on the side of the people .

oh man I'm so done with labour's pro business stance they just make deals w/ city financiers like jamie dimon and expect us to trust them? i mean what's in it for them? and btw, £3bn tower in Canary Wharf sounds like a perfect way to gentrify london and kick out the locals.

i'm low-key worried about this too - how are they gonna address concerns about wealth creation when banks just keep raking in record profits? it's just not right. we need public services that benefit everyone, not just the 1%

and can someone pls explain to me why labour thinks they're being so subtle w/ this pro business stance? like, hiding behind 'pro-growth' and 'pro-jobs', but really what are they doing? negotiating with bankers who have a vested interest in keeping things status quo

I'm telling you, this is some serious BS . Labour thinks they're just being nice to the big banks and getting them on their side, but what's really going on here? It's like they're selling out to the highest bidder . I mean, have you seen that £3bn tower Jamie Dimon wants to build in Canary Wharf? That's some serious insider trading if you ask me .

And let's not forget about Goldman Sachs' David Solomon ripping up his briefing notes and advising Rachel Reeves against increasing bank taxes... what a conflict of interest! It's like they're speaking the same language, but which one is it? The public or the bankers?

I'm calling foul on this whole thing. Labour needs to get their priorities straight and start fighting for the people, not just lining the pockets of the 1% . We need some real change around here, not just more of the same old politics as usual .

I don't trust these fancy bankers one bit . Back in my day, we didn't need a special birthday bash for some rich guy like Jamie Dimon to get invited to the palace... er, I mean, King Charles's party . It's just another example of how Labour is getting too cozy with the City crowd . I mean, what about all those ordinary people who lost their homes and jobs during the 2008 financial crisis? Don't they deserve some love from our politicians?

And don't even get me started on these massive profits bankers are making . It's like they're printing money or something! Meanwhile, public services are still struggling to cope with funding cuts and underfunding . I think the TUC is onto something when they say banks should pay a bit more in tax to invest in our public services .

It's just not right that Labour is so willing to pander to the interests of the wealthy elite . We need politicians who are looking out for all of us, not just their big donors and corporate friends . Back in my day...

I mean, have you seen that video of Jamie Dimon's birthday bash for King Charles? It's crazy how much influence those city bigwigs have over Labour's policies. Like, seriously though, £3bn tower in Canary Wharf? That's just another way to line the pockets of the already rich. And what about all those bankers raking it in while the public is still struggling with the 2008 financial crisis? It's time for some real change, imo.

I think it's kinda weird how Labour is so close to the city folk . I mean, they're basically rolling out the red carpet for them , but at the same time, MPs are like "wait a minute, this isn't right" . It's all about trying to woo bankers and company bosses after that whole love-in thing went sour .

I get it though, Labour wants to grow the economy and create jobs , but how can they do that when banks are making so much dough? Like, £24.1bn in profits just in half a year is crazy ! We need some balance here .

I'm not saying Labour should be all anti-business, but what's with the lack of action on tax increases? Just letting banks rake it in while public services are still struggling . It feels like there needs to be a proper conversation about this .

Anyway, I guess that's just the way the cookie crumbles . Labour's trying to play nice with the city, but critics say they need to do more .

I dont get why labour is so keen on mates from wall street. like, rachel reeves just gave banks a free pass in the budget and now they're going back for another slice of cake it feels like labour is trying to pander to the rich guys instead of taking care of regular people who are struggling to make ends meet . i wish labour would focus more on public services and less on making friends with the banking elite

I'm telling you, this is getting out of hand ! Labour's going all out to curry favour with the big banks, and it just seems like they're doing whatever it takes to keep them happy . I mean, £3bn tower in Canary Wharf? That's a sweet deal for JP Morgan, but what about the people of London who can't afford housing prices that high ?

And don't even get me started on the lack of tax reform . £40bn lost to banks in the budget is just highway robbery . I think Labour needs to take a step back and remember why they're in politics: to serve the people, not just the wealthy elite .

It's all about winning elections, but at what cost? The party's ideology gets watered down with every high-stakes meeting and whispered promise . We need real change, not just a fancy facade .

the thing is, i think labour's getting a bit too comfortable with big finance ... like, yeah they're making an effort to woo bankers and bosses, but at what cost? their stance seems more about appeasing the 1% than actually addressing inequality . it's like, we still haven't fully recovered from the '08 crash, and now labour is more worried about pleasing the City than taking on the big banks themselves? that £40bn tax-raising budget just felt like a tiny step in the right direction . what really matters is how they're going to use their power to benefit the majority, not just the wealthy few .

The more I think about it, the more I'm worried about where Labour is heading with this pro-business stance . They're basically rolling out the red carpet for Wall Street and City financiers, which doesn't sit well with regular people who are still feeling the pinch from the 2008 financial crisis .

I mean, what's up with this birthday bash for King Charles at JP Morgan's new Manhattan HQ? It's just a bunch of toadies and sycophants celebrating the royal's special day while the average Joe is struggling to make ends meet .

And don't even get me started on the fact that Labour isn't taxing banks enough . The chancellor's failure to levy a windfall tax on banks in the budget was a huge missed opportunity . It's just not convincing when you're telling people to contribute more to fix public services while bankers are raking it in .

The city's influence over government policy is getting out of hand . We need to have a proper conversation about the sector's lobbying and influence, but Labour isn't doing enough to address these concerns . It's time for them to put people first instead of lining the pockets of bankers .

This pro-business stance just doesn't sit well with me . I hope they take another hard look at their priorities before it's too late .

I'm not feeling this... Labour's trying too hard to win over the big bank bosses, but at what cost? It feels like they're forgetting where their real power comes from - the people on the streets who are struggling with debt and living costs. They're making promises to corporations that don't necessarily benefit everyday folks.

I'm getting so frustrated with all these big banking bosses having such a strong hold on our government . It's like they're the ones pulling the strings from behind the scenes, rather than our elected officials making decisions for us. And don't even get me started on how little tax those banks paid in the budget... £40bn and it's just barely enough to make a dent? I mean, I know Labour wants to be pro-business and all that, but can't they see how this is just enabling more inequality?

And have you seen the Canary Wharf tower plans from JP Morgan? It's like they're just throwing cash around for their own gain . We need to start holding them accountable for their profits, not just taking a handout every now and then. We should be investing in public services, not building fancy buildings that just benefit the rich.

I'm all for a strong economy, but it has to be one where everyone benefits, not just the 1% . We need more transparency and accountability from our government, especially when it comes to financial services . Otherwise, we're just going to keep on seeing more wealth disparities and less equality for everyone else.

And by the way, can someone please make my blog post about this look better? I'm having a major layout meltdown

The city is like a character from a movie who always seems to get what they want - and in this case, Labour is trying to be their best friend . But honestly, it's getting a bit too cozy for comfort. I mean, £3bn tower in Canary Wharf? That's some serious cash . It feels like the banks are calling the shots here, and Labour is just trying to keep up with the City's demands. David Solomon ripping up his briefing notes was like something out of a Marvel movie - "I'm not here to talk about taxes, I'm here to save the day!"

And what about those record profits? £24.1bn in the first half of 2025? That's like a superpower . It's time for banks to use that power for good, not just lining their pockets. The TUC is right - it's time for some tax justice . Maybe Labour needs to have an honest conversation with its MPs and voters about what this pro-business stance really means. Can't we get a bit more balance here?

so it looks like labour is trying super hard to win over the city, but honestly, i'm not sure if they're just being genuine or if they're just too scared of losing their business backers . i mean, come on, jamie dimon gets to host a birthday party for king charles and you get £40bn in tax from that? it doesn't sit right with me either that the tuc is asking banks to use their profits to fund public services, seems kinda basic .