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Osborne Reins In British Bank Levy Following HSBC Pressure

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U.K. Chancellor of the Exchequer George Osborne will cut a levy on banks over six years and then limit it to domestic balance sheets, following pressure from firms including HSBC Holdings Plc that threatened to leave London.

To offset the reduction, banks’ profits will be taxed by additional 8 percent on top of their corporate tax, starting next year, Osborne said as he presented his budget in Parliament on Wednesday. The change means the government will raise more money from banks during this administration, he said.