Tower Hamlets Council's Cabinet has approved a Memorandum of Understanding (MOU) with JP Morgan Chase, paving the way for a significant £3 billion development in Canary Wharf. The landmark deal, confirmed at a Cabinet meeting on Friday, March 27, 2026, is expected to create approximately 3 million sq ft of office space, accommodate up to 12,000 employees, and inject an estimated £9.9 billion into the UK economy.
The MOU aims to secure this substantial investment by exploring a business rates incentive mechanism, potentially through an Enterprise Zone or the Business Rates Retention Scheme. Early modelling suggests a return of £1bn-£1.6bn over a 25-year period
through retained business rates. However, the Business Rates Retention Scheme option would involve the Council absorbing 30% of the cost, the GLA 37%, and the Government 33%, representing a substantial financial risk and could reduce long‑term core income
for the borough. The report notes that Government has indicated that JP Morgan is unlikely to progress without clarity and certainty on business rates liabilities.
The development is anticipated to begin construction as soon as approvals are in place, taking approximately six years, with completion expected around 2032. The Memorandum of Understanding (MOU) itself is expected to be signed by March 31, 2026. A further Cabinet report will follow with finalised modelling, legal implications, and recommended options, including any requirement for Cabinet approval.
Councillor Kabir Ahmed, Cabinet Member for Regeneration, Inclusive Development and Housebuilding, hailed the development as a positive thing for the borough,
anticipating it would re-energise the cluster within the Isle of Dogs and Tower Hamlets.
Mayor Lutfur Rahman described the opportunity as once-in-a-lifetime,
highlighting the competition Tower Hamlets faced from Frankfurt and Paris to secure the investment. He stressed the importance of ensuring local residents benefit from the development through job and training opportunities. We want the residents of this borough, our workforce, our boys and girls, our men and women to also tap into some of those jobs,
he stated. The Mayor further elaborated, We don't want just reception jobs, retail jobs, we want real jobs on the trading floors. That's the kind of jobs we want. Jobs that means real money.
Measures to ensure local residents are qualified for these roles are implied through the council's employment and skills team
and securing first refusal for those jobs.
Further details on the council's financial considerations and the development agreement can be found in the Public reports pack for the Cabinet meeting on 27th March 2026.
