London’s investment bankers and lawyers have earned more than £1bn from a surge in takeover deals this year, fueling criticism about high salaries in the financial sector amid a cost of living crisis. The value of mergers and acquisitions of UK-listed companies has increased by 175% in 2026 to $132.9bn (£100bn), according to the London Stock Exchange. This rise has been driven by overseas buyers, particularly American firms and private equity groups, snapping up British businesses at record rates. Official filings suggest that fees paid to investment bankers, lawyers, and accountants working on these deals have exceeded £1.2bn, contributing to the high pay packages seen in the sector. The surge in corporate takeovers has boosted advisory business at the largest banks and law firms in the City of London. JP Morgan has been the most active bank, advising on 14 deals involving UK companies worth a combined $89.4bn (£67.6bn), according to the LSE. The leading law firm was Slaughter and May. The removal of a government rule in late 2023 that limited bonuses to twice annual salaries has allowed banks to set their own limits. Now, top performers at firms like Goldman Sachs can be paid up to 25 times their annual salary. The increase in business comes as the banking sector resists calls for higher taxes. Jamie Dimon, the CEO of JP Morgan, has warned UK officials against raising taxes on banks in his first budget on 28 October. The UK Finance industry body has supported this stance, noting that UK lenders currently pay a 28% corporation tax rate, higher than the standard 25%, plus a separate surcharge on their UK balance sheets. While dealmaker pay continues to rise, many UK households are struggling with the cost of living. Charlotte Brumpton-Childs of the GMB union criticized the high pay of financial professionals, saying they are paid “huge sums while the people who keep this country moving struggle to make ends meet.” Paul Nowak of the Trades Union Congress called for a windfall tax on lenders’ profits, arguing that if banks can afford generous payouts, they can also afford to pay more tax. Earlier this month, the Office for National Statistics reported that average earnings growth, including bonuses, slowed to 3.9% in July, down from 4.1% in June. Despite the takeover boom, there are concerns that investment banks may lose revenue from research and flotation work as more companies leave the London stock market. However, Airtel Money, the mobile money arm of Airtel Africa, announced plans for one of the largest UK listings in years.