Bank levy set at 0.04 percent in 2011, 0.07 percent from 2012

LONDON (Reuters) - Britain's tax on bank balance sheets will be set at 0.04 percent in 2011, rising to 0.07 percent from 2012, a government source said on Tuesday.

Chancellor George Osborne earlier announced the new coalition government was slapping a 2 billion pound tax on bank balance sheets as part of a deficit-cutting budget.

"The rate in 2011 is 0.04 percent, rising to 0.07 percent from 2012," a government source said.

(Reporting by Adrian Croft; editing by Keith Weir)