Shares in British banks were up on the FTSE 100 in morning trading, following the Comprehensive Spending Review outlined yesterday by Chancellor of the Exchequer George Osborne.

Mr Osborne outlined £89 billion in cuts to public spending over the course of the current parliament, due to come to an end in 2014/15.

Business groups such as the British Chambers of Commerce and the Confederation of British Industry welcomed the CSR, particularly its commitment to keep some money for investing in infrastructure.

By 09:40 shares in Lloyds Banking Group were up 0.24 per cent to 70.47 pence per share, RBS shares increased 0.76 per cent to 46.35 pence per share, Barclays shares rose 0.24 per cent to 291.80 pence per share while HSBC shares climbed 1.61 per cent to 670.60 pence per share.

Overall the FTSE 100 was up 0.62 per cent to 5,764.16.