Bank levy raised by 0.03 percentage points

LONDON (Reuters) - The government increased the levy it charges on bank balance sheets in its 2011 Budget on Wednesday to counteract any benefit banks may receive from a broader reduction in corporation tax.

The new rate from 2012 onwards for short-term chargeable liabilities will be 0.078 percent, up from a previous 0.075 percent. For long-term liabilities and equity, the rate will be 0.039 percent, the finance ministry said.

(Reporting by Matt Falloon and David Milliken)