Conservative MPs racheted up the pressure on Labour peers today after Barclays' documents revealed that "senior Whitehall figures" were reportedly involved in a banking scandal.
Tories highlighted the reference in the phone call record between Barclays boss Bob Diamond and the Bank of England's deputy chief Paul Tucker. Backbencher Matt Hancock said:
"It is now shockingly clear that senior figures in the Labour Government were involved in the question of what happened to Libor rates. Labour figures have serious questions to answer."
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."