MPs dismiss Hunt’s ‘damp squib’ plan to boost the City sparking a furious response from the Treasury

MPs have labelled Chancellor Jeremy Hunt’s plan to boost the City a ‘damp squib’ – sparking fury from inside the Treasury.

In a report on the first anniversary of the Edinburgh Reforms, the Treasury select committee, which scrutinises the department for Parliament, said it was ‘disappointed’ at the ‘limited impact’.

But a source close to the department turned on the MPs, saying their findings were ‘a bit rich’, accusing them of ‘criticising risk takers and wealth creators’.

The MPs’ report appears to crystallise a feeling that reforms to revive activity and reinvigorate the City have not borne fruit.

Dealmaking remains moribund and the exodus of Britain’s listed firms shows no signs of slowing.

Harriett Baldwin, chairman of the committee, said many reforms were ‘logical and sensible’, but added: ‘12 months on, the lack of progress or economic impact has left them feeling like a damp squib.’ 

The Treasury source said MPs opposed many measures, accusing the Government of ‘moving too far, too fast’.

But the committee cast doubt on claims about how much progress had been made.