UK banking stocks dip on media report of budget tax increase

By Samuel Indyk

LONDON, Oct 16 (Reuters) - British banking stocks fell slightly on Friday after the Guardian reported finance minister John Healey was set to tax the banks in his October 28 budget as he attempts to keep deficit reduction plans on track.

Analysts covering banks have said an option open to Healey could include an increase in the 3% surcharge that banks pay on their profits.

Barclays, Lloyds and NatWest were down between 0.2% and 1.8% in early trade, underperforming euro zone banks, which were up 0.9%. .SX7P