Banking tax raid fears hit London lenders' shares ahead of crucial budget

Shares in some of Britain's biggest banks sold off Friday amid reports that the U.K. government will hike taxes on London-listed lenders' profits later this month. Lloyds Banking Group led losses, sliding 1.8%, while NatWest was 1.51% lower by 11:30 a.m. in London (6:30 a.m. ET). Barclays moved 0.13% higher, reversing earlier losses. London-listed shares of HSBC and Standard Chartered — which both derive much of their profits overseas — added 1.2% and 0.71%, respectively. Finance Minister John Healey is expected to raise the sector-specific surcharge on banks' profits to 8%, up from 3%, when he delivers his first budget as Chancellor, scheduled for Oct. 28.