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The government has been accused of interfering in the decision by the City watchdog to drop an inquiry into banking culture.

Labour MP John Mann, who sits on the Treasury Select Committee, made the claim on Friday's Daily Politics.

The Commons committee is to question bosses from the Financial Conduct Authority over the scrapping of the inquiry into the culture, pay and behaviour of staff in banking.

Mr Mann said: "It's my belief that the government has interfered. I think our inquiry will prove that.

"The FCA hasn't reached its own conclusions, it's been told what to do - it's been told via the Treasury."

The Treasury has denied involvement in the decision.

But Mr Mann said it was "a bit weaselly" of George Osborne to claim he had no prior knowledge of the decision, and claimed that the Chancellor's officials "knew what was going on".