Shares in the big three domestic lenders, Lloyds Banking Group PLC (LSE:LLOY), NatWest Group PLC (LSE:NWG) and Barclays PLC (LSE:BARC), helped lift the FTSE 100 on Tuesday after reports that the sector would escape extra taxes in tomorrow's Budget.
Chancellor Rachel Reeves is preparing to spare banks from the tax raid that had been expected, the Financial Times reported.
The report suggested that Treasury officials want lenders to "refrain from criticising the government’s decisions," according to one source, after the sector had warned they would curtail lending if hit with higher taxes.
Heavy lobbying by banks appeared to have won over the Chancellor, the report said.