London's investment bankers and lawyers have made more than £1bn from a frenzy of takeover deals so far this year, reigniting a political row over high City pay during a squeeze on household budgets.
- 175%Rise in UK takeover value in 2026
- $132.9bnValue of UK M&A deals this year (LSE)
- £1.2bn+Fees earned by bankers, lawyers and accountants
- 14UK deals advised on by JP Morgan, the busiest bank
A record pace of takeovers
The value of mergers and acquisitions of UK stock market-listed companies has surged 175% this year to $132.9bn (£100bn), according to London Stock Exchange data, as overseas buyers snap up British companies at a record pace. The spree has been fuelled by a flood of private equity cash and acquisitive American buyers targeting businesses seen as undervalued relative to their US and European peers.
Fees paid to investment bankers, lawyers and accountants working on these deals have topped £1.2bn, according to official filings, helping to drive multimillion-pound pay packets across the Square Mile.
JP Morgan tops the league table
Bankers at JP Morgan have been the busiest, advising on more takeovers involving UK companies than any other bank this year — a total of 14 deals worth a combined $89.4bn (£67.6bn), according to LSE figures. Rivals including Goldman Sachs, Morgan Stanley, Barclays and Deutsche Bank have also picked up substantial advisory work as the wave of dealmaking widens beyond any single sector.
The most lucrative single deal in the City this year has been the £10.6bn takeover of lab-testing group Intertek by private equity firm EQT, which is expected to generate more than £370m in fees. Morgan Stanley, Barclays and Deutsche Bank are advising EQT on the deal, while Intertek is working with Goldman Sachs.
Lawyers out-earning some bankers
Lawyers at the City's top firms have started to out-earn some bankers on the back of the deal boom. Partners at "magic circle" firms Linklaters and Clifford Chance were paid an average of £2.5m and £2.3m respectively in the year to April — their highest ever. Partners at A&O Shearman were paid an average of £2.2m over the same period.
Bonuses, no longer capped
UK bankers have also benefited from soaring bonuses since the government scrapped a rule that capped bonuses at twice annual salary in late 2023. Each bank now sets its own upward limit; large investment banks such as Goldman Sachs now allow top performers to be paid up to 25 times their annual salary.
A tax fight before the budget
The surge in dealmaking business comes as the banking sector lobbies against paying higher taxes in the UK. Jamie Dimon, the billionaire chief executive of JP Morgan, has issued several public warnings to Andy Burnham and his chancellor, John Healey, against raising taxes on banks in the government's inaugural budget on 28 October. The industry body UK Finance echoed that view this week.
Lenders in the UK currently pay a 28% corporation tax rate — higher than the standard 25% rate — as well as a separate surcharge on their UK balance sheets. Campaigners argue that a sector booking record advisory fees and bonus pools can absorb a larger contribution, while the industry warns that further tax rises risk pushing dealmaking activity to rival financial centres.
What to watch next
The scale of the fees generated this year — and the bonuses they fund — is likely to feature heavily in the debate over the October budget. Any move by the chancellor to raise the bank levy or corporation tax surcharge would test how far the government is willing to go to align a booming City with a broader squeeze on living standards.
