The Chancellor, John Healey, has told the Commons that the bank surcharge will rise from 3% to 6% for 15 months from January, with the money going to immediate help with energy bills.
The surcharge is paid on top of the 25% corporation tax rate, ITV reports. Reuters reports that it applies to profits above a set threshold.
Mr Healey said: "And so banks will pay an extra 3% on the Bank Surcharge, this will be time limited, to pay for immediate support on energy bills. Starting in January, ending 15 months later."
He added: "Just as the British people helped support our banks 20 years ago, it is our banks that will help give families breathing space today."
The statement bears out the Bloomberg report from before the Budget. Bloomberg said the rise would stay below 8% and would be temporary, and both points are now confirmed. Reuters says the increase partly reverses the cut from 8% to 3% made under Rishi Sunak in 2023.
Shares in Lloyds, Barclays and NatWest rose on the announcement, Reuters reports. No figure for how much the higher rate will raise has been reported yet.