UK bank tax will be temporary and below 8%, Bloomberg reports

LONDON, Oct 28 (Reuters) - British finance minister John Healey will on Wednesday announce a temporary bank tax increase of less than 8%, Bloomberg reported.

Healey will increase the bank surcharge, which is currently levied at 3% on top of the 25% corporation tax rate, but will not return it to the 8% level it had stood at until 2023, Bloomberg reported citing people familiar with the matter.

British banking stocks rose after the report, with Lloyds, Barclays and Natwest all up at least 2%.

(Reporting by Sam Tabahriti; writing by Yoruk Bahceli, editing by William James)