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The top executive of JP Morgan Chase has given final approval on a substantial three billion pound office complex in London in the wake of commitments from British authorities about pro-business policies.

Sequence of Events

The major US bank, that together with another major bank disclosed significant expansion projects hours after avoiding higher taxes in the Treasury's autumn budget, only gave final approval last Friday.

This approval was preceded by a visit to the United States by a top business adviser, that conferred with the banking executive to discuss commitments about the government's policies.

Financial Background

The discussions occurred days before the government announced significant tax increases in a economic plan that protected financial institutions from additional taxes, in response to intense lobbying from the financial sector.

"The project ... would likely not have proceeded if this financial plan had been regarded as anti-prosperity."

Development Information

On this week, the banking giant disclosed plans to construct a substantial headquarters in the docklands area, which will serve as its new UK headquarters and house more than half of its London employees.

The company stressed that the investment would be contingent upon "a continuing positive business environment in the UK".

Financial Benefits

The bank has stated that the development could contribute nearly ten billion pounds to the British economy over the coming half-decade.

The government official commented positively about the investment, describing it as a "significant demonstration of faith in the British economic prospects".

Broader Perspective

A source familiar with the development project indicated that the decision to invest was "the result of comprehensive analysis" and that "no one could know whether financial institutions were going to be taxed before the financial statement".

The banking executive commented that the "British authorities' focus of economic growth has been a critical factor in influencing our this decision".

Parallel Announcements

A second financial institution disclosed that it would expand its UK regional presence and recruit additional workers, in a move that would substantially expand its employee numbers in the Britain's second largest metropolitan area.

The Treasury had examined increasing the financial sector tax in the UK, as it considered methods to increase income after opting not to implement higher personal taxation, but ultimately decided against the measure.

Financial institutions in the UK are subject to a increased business taxation, which is exceeding the normal rate, as well as a distinct tax on their UK balance sheets.