THE government has been accused of “muzzling its own watchdog” after ministers refused to sanction former chancellor Phillip Hammond for breaking lobbying rules.

Labour’s deputy leader Angela Rayner has said PM Boris Johnson’s government was failing to tackle corruption or follow its own rules after it emerged Mr Hammond had been lobbying Treasury officials on behalf of a bank.

Lord Hammond, who holds a directorship of OakNorth bank alongside a seat in the Lords, led the advisory committee on business appointments, which enforces rules meant to prevent former ministers using knowledge and contacts for commercial gain. 

After issuing the findings, committee chair Lord Pickles wrote to Michael Gove, then the minister responsible, in August, suggesting that he should take action over the rule breach.  

The committee concluded there was reasonable concern that engagement with the Second Permanent Secretary at the Treasury was only available to OakNorth as a direct result of Mr Hammond’s time as chancellor. 

The government did not respond to the letter until Ms Rayner tabled a parliamentary question earlier this week.

Paymaster General Michael Ellis told Ms Rayner that “although we concur with the committee’s conclusion, we do not believe further sanctions should be taken.”

Ms Rayner said: “This is just the latest evidence that Boris Johnson will not tackle the corruption that has engulfed his government and the Conservative Party. 

“Instead of enforcing the rules he breaks the rules himself, tries to change the rules and defends senior Conservatives who break the rules.

“The system is completely broken and this government will not close the revolving door between public office and cushy lobbying gigs.”