Ed Balls slams ‘false allegations’over Barclays

Local MP's protesting about Police Cuts.'Ed Balls
Local MP's protesting about Police Cuts.'Ed Balls

ED Balls has demanded an apology after suggestions linking him to a banking scandal.

The shadow chancellor and MP for Morley and Outwood asked chancellor George Osborne to say sorry for saying there were “questions to answer” about a rate-fixing scandal at Barclays.

Mr Osborne claimed key figures in the Labour party were involved in pressuring Barclays to alter lending rates when they were in power.

But Paul Tucker, the deputy governor of the Bank of England, rejected the suggestion when questioned by MPs.

Mr Balls said: “It is now absolutely clear that the Chancellor’s allegations last week were totally false and completely without foundation.

“George Osborne should now publicly withdraw these false allegations and apologise.”

The row erupted after Barclays was fined £290m for trying to manipulate a key bank interest rate which influences the cost of loans and mortgages. Its chief executive, Bob Diamond, was forced to resign.

While the Conservatives linked the scandal to Labour, which was in power at the time, Mr Osborne faced mounting pressure to apologise this week when a fellow Tory, Andrea Leadsom, who is on the treasury select committee, told the BBC: “I think obviously he made a mistake and I think he should apologise to him.”

Mr Osborne has so far not apologised or withdrawn his comments.