Millions could face dearer mortgages and loans if the Chancellor hits booming banks with a Budget tax raid on Wednesday

Analysts expect Wednesday's Budget to lift the surcharge on bank profits from 3% to 5%, raising roughly £800m a year. Healey is reportedly weighing a full reversal of Jeremy Hunt's cut, which would take it to 8%. That would land badly in the City and could curtail lending. 'Anything higher than this level would probably be taken badly by the shares,' said Benjamin Toms of RBC Capital Markets.

Barclays posted £2.3bn third-quarter profit while axing 5,000 jobs to speed up AI.

Barclays boss CS Venkatakrishnan called any tax hike 'bearable' for his bank.

Lloyds, the UK's biggest mortgage lender, is tipped to nearly double its quarterly profit.