THE Chancellor will retain a significant role for the Treasury in his reforms on banking regulation, it was reported, as rumours of a rift between Alistair Darling and the Bank of England continued.

His hotly anticipated White Paper has now been pushed back, the Treasury confirmed.

Both the Bank and the Financial Services Authority have called for more powers in the wake of the financial crisis. But the proposals will retain a Treasury veto on regulation measures, according to reports.