Banking giant announces new £10bn office

Global banking giant JP Morgan Chase has announced plans to build a new tower in Canary Wharf, claiming it will boost the UK’s economy by £10bn.

The firm said at three million square feet (280,000 sq m), the building would have double the space of Britain’s current tallest building, the Shard.

It will hold about 12,000 of its staff and be its most significant presence in Europe, the Middle East and Africa (EMEA).

The announcement follows the Budget, which the government said was aimed at boosting growth and in which banks escaped target tax rises which many in the industry had feared.

The design of the new tower, including the height, is still being discussed.

Construction is set to take six years and will begin as soon as it gets necessary approvals, JP Morgan said.

The decision to remain in Canary Wharf is a big win for the financial district, which struggled to retain tenants after the Covid-19 pandemic but is enjoying a rebound as companies increasingly demand that staff return to the office.

Last year, Reuters reported the banking firm was weighing options in London after outgrowing its existing 33-storey tower in Canary Wharf. It is now considering its options for that building.

The new headquarters will be built on Riverside South, which JP Morgan bought in 2008 – but shelved plans following that year’s global financial crisis.

It 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.

Chief executive Jamie Dimon said the UK government’s “priority of economic growth” had been “a critical factor” in helping them make this decision.

“This building will represent our lasting commitment to the City, the UK, our clients and our people,” he added.

Chancellor Rachel Reeves called the move a “multi-billion pound vote of confidence in the UK economy”.

Speaking to BBC Radio 4 Today’s programme, she said: “Companies can invest anywhere – they are choosing Britain because they like what they heard in the Budget.”

Shobi Khan, CEO of Canary Wharf Group (CWG), called JP Morgan’s decision a “defining moment” for the district.

In recent years, most of the new construction work in Canary Wharf has been residential, and the office vacancy rate for the wider Docklands area of 15% is higher than the London average of 10.4%, according to industry data.