Tyrie holds out chance of a Bank probe

Andrew Tyrie, chairman of the Commons Treasury Select Committee, said he would "not hesitate to send special investigators" into the Bank of England if necessary after the Government backed down on parts of the Financial Services Bill.

The Treasury minister Mark Hoban said the Government would look again at how the Bank is held to account after MPs showed widespread support for Mr Tyrie's proposal that the Court of the Bank be ordered to publish regular reports on how the institution was performing.

"This was a climbdown under pressure," said Mr Tyrie. "It sets a precedent for further improving the legislation before us on the governance of the bank, particularly when this moves to the House of Lords."

He added: "Key parts of the legislation appear to have been written by the Bank itself. We sent inspectors into the Financial Services Authority over publishing its report in Royal Bank of Scotland and would not hesitate to do so again at the Bank of England."

Mr Tyrie said his Committee believed it was "far better to let the Bill slip by a few months but get the legislation right".