UK bank stocks rise after reports they may dodge budget tax raid

(Reuters) -A gauge of British bank stocks rose in steady markets on Thursday after the Financial Times reported Chancellor Rachel Reeves was set to spare them from a punitive budget tax raid.

The FTSE 350 Banks Index gained 1.3%, outperforming the flat FTSE 100 and FTSE 250.

By 0811 GMT, NatWest, Lloyds, Close Brothers, Standard Chartered and Barclays shares were up between 1% and 2.7%.

According to the FT, Reeves and others involved in budget preparations say banks in Britain already pay high levels of tax by international standards.

(Reporting by Danilo Masoni; editing by Dhara Ranasinghe)