George Osborne will announce a bank tax on Tuesday aiming to raise £3bn amid criticism the levy could hit UK competitivenesss.
The tax will be based on banks' balance sheets rather than their earnings, the Sunday Times reports.
"I'm going to ask the banks to pay a bank levy so there will be a contribution from them," he told the BBC. "What I'm determined to do is to make sure that the measures are tough but they're also fair."
Osborne will also proceed with a plan to rise CGT to around 40% for non-business assets but will soften his corporation tax proposals when he announces his Budget on Tuesday.
However Lord Myners the former City minister warned on Sunday the bank levy could make Britain less competitive, the Telegraph reports.
The idea is similar to a proposal being considered in the US but the announcement would make the UK the first country to impose a levy.
Lord Myners said a unilateral levy on the banking industry "would be a very heavy blow to the UK" and argued it could make British banks less competitive against international rivals.
Public sector braced for pension levy which has created £1trn black hole
Ex-Labour Cabinet minister John Hutton has been given the job of taking the axe to state employees' retirement funds, the Daily Mail reports.
Millions of public sector workers are facing a painful levy to fund their 'unsustainable' gold-plated pensions.
The Government has recruited ex-Labour Cabinet minister John Hutton to take the axe to state employees' retirement funds, which have created a staggering £1trn black hole in the public finances.
Markets fear US Treasuries sell-off as China ends currency freeze
Global markets are braced for a possible sell-off in US Treasury bonds after China said over the weekend it will allow the yuan exchange rate to adjust against the dollar, the Financial Times reports.
It would end a two-year currency freeze which has led to trade clashes with Washington and Brussels.
The yuan is expected to rise slowly against the dollar, although it may fall if the euro weakens further
China's Central Bank said the economic recovery had opened the way for a return to "flexibility" but ruled out an immediate one-off rise in the yuan. The currency will be allowed to fluctuate within a widened band of 0.5% each day against a basket of currencies.
The yuan is now expected to rise slowly against the dollar, although it may fall if the euro weakens further.
First mentioned in Cridland Report
Second acquisition of 2019
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