Officials at the Treasury have been criticised for running £100 billion of off-balance sheet liabilities despite possessing sketchy knowledge of financial markets.

A senior banker, who declined to be named, told today's Times: "No private corporation would run its Treasury department in this way."

Conservative spokesman Howard Flight said: "However you look at it, the government is building up at least £100 billion of off-balance sheet liabilities and they seem to be increasing."