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LONDON, July 8 (Reuters) - British finance minister GeorgeOsborne said on Wednesday he would reduce a bank levy charged onthe assets of financial institutions and replace with it with asurcharge on bank profits.
"I will, over the next six years, gradually reduce the banklevy rate -- and after that make sure it no longer applies toworldwide balance sheets," Osborne said as he announced apost-election budget plan in parliament.
"But to maintain a fair contribution from the banks, I willintroduce a new 8 percent surcharge on bank profits from Jan. 1next year."
The bank levy was introduced in 2011 in response to thefinancial crisis and applies to the global balance sheet assetsof British banks as well as assets belonging to the UKoperations of foreign banks.
Europe's biggest bank, HSBC, has said the levy willbe a factor in whether it decides to keep its headquarters inBritain.
Britain's stock market index of banking shares rose after Osborne's statement, up 1.6 percent at 1203 GMT, withHSBC gaining 1.5 percent, Lloyds 0.7 percent higher andRBS up 1 percent. (Reporting by David Milliken and Huw Jones; Writing by WilliamSchomberg; Editing by Catherine Evans)
