Labour overspending did not trigger financial crash, says senior civil servant

Permanent secretary to Treasury, Sir Nicholas Macpherson, contradicts Tory pre-election claims, saying financial crisis was 'a banking crisis pure and simple'

The permanent secretary to the Treasury, Sir Nicholas Macpherson, has argued that the 2008 financial crisis was "a banking crisis pure and simple", contradicting Conservative claims that it was caused by Labour overspending.

The 2008 crisis was a banking crisis pure and simple. Excessive risk had built up in the system