MATT HANCOCK’S failure to resign over his ministerial code breach sets a precedent that rules do not apply and gives ministers free rein to break the rules, Labour said today.

The warning follows Lord Geidt’s investigation, which found that the Health Secretary broke the code by failing to declare his stake in a family firm that received NHS contracts, but said it fell short of being a resigning matter.

In March in the MPs’ register of interests Mr Hancock declared that he owns 20 per cent of shares in Topwood Ltd, a firm owned by his sister and other close family members that specialises in secure storage, shredding and scanning of documents.