London’s biggest financial institutions could shift operations away from the UK if the government intensifies its regulatory grip on the City, a top City banker has warned. Chris Barlow, head of legal and compliance at Japanese bank Nomura, said “short-termism and political point-scoring” in Westminster over financial regulation could exacerbate the
Simon Hunt
Tuesday 16 June 2026 4:03 am | Updated: Monday 15 June 2026 5:16 pm
London’s biggest financial institutions could shift operations away from the UK if the government intensifies its regulatory grip on the City, a top City banker has warned.
Chris Barlow, head of legal and compliance at Japanese bank Nomura, said “short-termism and political point-scoring” in Westminster over financial regulation could exacerbate the burden faced by banks and jeopardise investment decisions.
Speaking to the Following the Rules podcast, Barlow said: “Politics is incredibly tribal at the moment. Both sides are just throwing points up one another and not thinking long-term.
“And also the politicisation of regulation is difficult. If you’ve got a consistent, sensible, predictable way forward, it’s helpful. But when it becomes disjointed, politicised, short-term, that is very, very hard to deal with, not only in making sure you support your clients, but also ensuring that colleagues in the first line know what they should be doing, how they should be doing it, and what challenges there should be.
“If you’re constantly having to chop and change to implement new rules, it burns up a lot of time. It means you can’t focus on the rest of the business, and it means that the business is focused on the wrong things.
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“If you feel that you’re being unfairly treated, you’ll go elsewhere.”
Barlow cited reports that JP Morgan boss Jamie Dimon threatened to tear up plans to build a major new £3bn European hub for the US bank in Canary Wharf if the Labour leadership.
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“Short-termism and political point-scoring could jeopardise that – that’s not in anybody’s interest,” Barlow said.
Santander boss hits out at bank tax rules
The remarks add Barlow to a growing list of bankers who have voiced their concern as speculation mounts that the industry could be turned to for a quick cash grab if the Labour government lurches to the left.
Ana Botín, the chief executive of the Spanish banking giant, has said the UK tax regime should not look to specifically target lenders, which already face an outsized rate.
“The question is, why single out the banks in particular and impose additional taxes?
“We already pay a corporate tax rate of around 30 per cent, our profit margins are nowhere near those of monopolistic players, and we’re not reaping windfall profits,” she told the Financial Times.
City banks are subject to a sector-specific levy and a surcharge that sits on top of corporation tax as well as VAT, property taxes, national insurance and other taxes levied on businesses.
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