London investment bankers and lawyers reaped more than £1bn from corporate takeovers in 2026 as British stock market mergers surged 175% to $132.9bn. The frenzy of overseas buyouts triggered union anger over soaring City pay amid national cost-of-living pressures and a fierce political battle over bank taxes.
A flood of private equity cash and acquisitive American buyers targeting undervalued British businesses has turned the City into a goldmine for dealmakers. Official filings suggest total fees paid to investment bankers, lawyers, and accountants working on these transactions topped £1.2bn, according to data from the London Stock Exchange.
JP Morgan and Slaughter and May Lead the Advisory Charge
Bankers at JP Morgan have been the busiest advisers in the UK market this year, steering 14 deals with a combined value of $89.4bn, or £67.6bn. On the legal side, Slaughter and May emerged as the leading advisory firm. Among boutiques, Evercore advised on five UK stock market deals, paying its senior dealmaking members an average of about £2m while its highest-paid member collected £16.2m.
The crown for the year’s most lucrative transaction went to the £10.6bn takeover of lab testing group Intertek by private equity firm EQT. That single deal is expected to generate more than £370m in fees. EQT tapped Morgan Stanley, Barclays, and Deutsche Bank for advisory work, while Intertek retained Goldman Sachs, JP Morgan Cazenove, and PJT Partners.
Record Partner Pay at Magic Circle Law Firms
Top-tier City lawyers have started to out-earn some of their banking counterparts following a historic year for corporate advisory work. Partners at Linklaters and Clifford Chance pulled down average pay packets of £2.5m and £2.3m respectively in the year to April, marking all-time highs for both institutions. Partners at A&O Shearman secured an average of £2.2m.
These bumper payouts coincide with the removal of regulatory pay constraints. UK bankers have benefited directly from the government’s decision to scrap a rule capping bonuses at two times annual salaries in late 2023. Major institutions now set their own ceilings, with Goldman Sachs permitting high performers to receive up to 25 times their base salary.
Political Friction Over Bank Taxes and City Bonuses
The explosion in financial sector compensation unfolds against a tense backdrop of fiscal lobbying. Lenders in the UK currently face a 28% corporation tax rate alongside a separate balance-sheet surcharge, sitting above the standard 25% corporate levy. Industry leaders, including JP Morgan boss Jamie Dimon, have warned officials against imposing further tax hikes ahead of the budget scheduled for October 28.
Labour unions have seized on the advisory windfall to demand wealth redistribution. Charlotte Brumpton-Childs, national secretary at the GMB union, criticized the massive broker payouts while ordinary citizens struggle to make ends meet. Trades Union Congress General Secretary Paul Nowak echoed those demands by renewing calls for a windfall tax on lender profits.
Unresolved Anxieties Over the London Stock Exchange
Even as dealmakers celebrate record fees, long-term structural anxieties persist regarding the health of London’s public markets. Official data shows just seven stock market listings raised £577m in the first half of the year, highlighting a persistent drought of new floats.