The largest banks could face higher tax bills under government proposals to reform the bank levy. 

The FT reported that while the so-called 'location levy' for British lenders is charged as a percentage of their total global liabilities and has so far raised £5 billion since its introduction in 2011, the Treasury is now considering redesigning how the charge is calculated.

In a consultation paper, the Treasury suggested placing lenders into different bands according to their size, as opposed to setting the tax for each bank separately every year.

The consultation includes five models that would see the banks in the top bands facing tax charges from £569.8 million to £782.4 million apiece.