London’s investment banking and legal sectors have reaped more than £1bn in fees from a wave of corporate takeovers this year. Data from the London Stock Exchange indicates that the value of mergers and acquisitions involving UK-listed companies climbed by 175% in 2026, reaching $132.9bn, or approximately £100bn. This surge is largely attributed to overseas buyers and private equity firms targeting undervalued British assets, a trend that has prompted concern regarding the long-term stability of the UK stock market.
Official filings suggest that the fees generated by this activity exceeded £1.2bn, providing a significant boost to the multimillion-pound compensation packages of senior dealmakers. JP Morgan has emerged as the most active advisor, managing 14 deals worth a combined $89.4bn. Among law firms, Slaughter and May has led the advisory work. Other notable activity includes the £10.6bn acquisition of the laboratory testing group Intertek by EQT, which is expected to generate upwards of £370m in associated fees. Lawyers and accountants working on these deals topped £1.2bn, official filings suggest, helping drive multimillion-pound pay packets, fees paid to investment bankers. 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 the LSE, bankers at JP Morgan have been the busiest. Each bank now sets its own upward limit.
Compensation in the City has been further bolstered by the 2023 government decision to remove the cap on bonuses, which previously limited them to twice an annual salary. Major institutions like Goldman Sachs now permit top performers to earn up to 25 times their base pay. Meanwhile, boutique firms like Evercore report average payouts of £2m for their senior dealmakers, with the highest-paid individual receiving £16.2m this year. UK bankers have also benefited from soaring bonuses, after the government scrapped a rule capping bonuses at two-times annual salaries in late 2023. Its best-paid member collected £16.2m this year. Millions of UK households are struggling with the cost of living, while pay continues to climb in the City.
Partners at “magic circle” law firms are also seeing record earnings. In the year ending in April, Linklaters and Clifford Chance partners earned averages of £2.5m and £2.3m respectively, while A&O Shearman partners took home £2.2m. These figures are expected to rise further as additional transactions, such as the £7bn takeover of easyJet by Apollo Global Management, are finalized. Overall, dealmaker fees are likely to be even higher this year as the figures do not include deals which did not complete, were rejected or for which documents have not been 7bn takeover of the FTSE 100 airline easyJet by the private equity firm Apollo Global Management, agreed last month.
This accumulation of wealth has ignited criticism during a period of sustained economic difficulty for the general public. Charlotte Brumpton-Childs, national secretary at the GMB union, argued that financial brokers are collecting massive sums “while the people who keep this country moving struggle to make ends meet.” She questioned the national value system, contrasting the “bloated financial sector” with those in essential roles.
The Trades Union Congress (TUC) general secretary, Paul Nowak, has renewed his call for a windfall tax on lenders. He asserted that if banks can provide such lucrative payouts, they have the capacity to contribute more in taxes. He noted that with energy costs expected to rise, many households face a worsening financial outlook.
The banking industry remains in opposition to higher taxes, currently lobbying against proposals that might appear in the upcoming budget on 28 October. JP Morgan boss Jamie Dimon and industry body UK Finance have both warned the government against increasing the tax burden. UK lenders are already subject to a 28% corporation tax rate, which includes a surcharge on their domestic balance sheets. Jamie Dimon, the billionaire boss of JP Morgan, has issued several warnings to Andy Burnham and his chancellor, John Healey, against raising taxes on banks in his inaugural budget on 28 October.
Public concern is compounded by recent data from the Office for National Statistics, which showed that average total earnings growth, including bonuses, slowed to 3.9% in the three months to July, down from 4.1% in the preceding period.
While the takeover boom fuels advisory revenue, there are concerns that the broader market outlook remains fragile. EY reported only seven listings on the UK stock market during the first half of 2026, raising a total of £577m. Despite this slow pace, there is some optimism following the announcement from Airtel Money regarding plans for a major UK listing.
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