Global banking giant JP Morgan Chase has unveiled plans to build a new tower in London’s Canary Wharf in an estimated £10 billion boost to the City.
The plans come as rival US investment bank Goldman Sachs announced it was going to double the number of staff employed at its Birmingham office.
The fresh commitments to their businesses in the UK come a day after the autumn Budget statement, in which banks escaped target tax rises which many in the industry had feared.
Chancellor Rachel Reeves said the banks were “choosing Britain because they like what they heard in the Budget”.
JP Morgan Chase, one of the world’s biggest banks, said the new building will be three million square feet and house 12,000 of its staff.
It is earmarked to be the business’s UK headquarters and its most significant presence in Europe, the Middle East and Africa (EMEA).
The construction is set to take six years and will begin as soon as it gets necessary approvals, JP Morgan said.
Chief executive Jamie 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.”
JP Morgan 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.
The bank said London-based staff will work from the new tower once it is complete, and its office in the City – while it plans to “consider its options” for an existing Canary Wharf office.
Meanwhile, Goldman Sachs announced plans to grow its Birmingham office and double its workforce from 500 to over 1,000 in the “coming years”.
The banking group said it formed part of efforts to “deepen our commitment to the UK economy”.
Ms Reeves told BBC Radio 4 Today that “the fact that we delivered 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.
Banks were spared from an increase to taxes on the industry in Wednesday’s Budget, after speculation that they were possibly in the firing line as Ms Reeves looked for ways to raise revenues.
Reports said earlier this week that Ms Reeves had instead asked the banks to express their commitment to the UK and the Budget.