Banks inquiry: Balls questions scope of probe

Labour will co-operate with a parliamentary probe into the the rate-rigging scandal at Barclays and other banks, despite its MPs voting against it in a Commons showdown.

Shadow chancellor Ed Balls said his party respected the will of Parliament, but also voiced serious concerns over the scope of the proposed inquiry.

Speaking in the Commons, Mr Balls said: "The prime minister and the chancellor have made a very grave error of judgement".