Shadow Chancellor Ed Balls has told ITV News that an "open, independent full-scale inquiry" was needed after documents produced by Barclays bank today allegedly showed the Bank of England's association with 'senior' Whitehall figures.
The Government and Labour clash over the scale of inquiry into the banking scandal. Labour want a full, independent one.
The new government inquiry will look both into the culture of banking and into the setting of Libor rates
The Chancellor's team says his announcement to the Commons will "shoot Labour's fox."