Bank shares rise after reports they will be spared tax hike amid growth mission

Banks were thought to have been in the firing line through a potential increase to the bank levy.

Shares in UK banks have risen following reports that they will be spared from a tax hike in Wednesday’s Budget.

Lloyds Banking Group, Barclays and NatWest were among the biggest risers on the FTSE 100 on Tuesday morning with their share prices up by about 2%.

Banks were thought to have been in the firing line through a potential increase to the bank levy.

This is an additional tax on the balance sheets of banks and building societies operating in the UK.

The Institute for Public Policy Research (IPPR) said in August that hiking a levy on the profits of British banking giants could raise up to £8 billion a year for public services.

But the Chancellor is preparing to avoid hitting lenders