Labour to admit Equitable failures

TREASURY Secretary Ruth Kelly will be forced this week to admit serious failings by the Government over the near-collapse of Equitable Life.

And the move could pave the way for compensation for thousands of Equitable policyholders.

MPs on the Treasury Select Committee want Kelly to explain why, when she read parts of the Penrose Report on the Equitable debacle to the Commons last week, she omitted anything that pointed to the Government playing a key role in the affair.

The report highlighted a number of failures that led Equitable to the brink of insolvency with a £4.4 billion shortfall in its books. Lord Penrose will also attend the hearing on Tuesday.

He is expected to inflict a further blow to the Government's credibility, confirming that bungling by former Equitable bosses and poor Government policing led to the downfall of the 242-year-old life office.