The chancellor, Rachel Reeves, has launched a rare bid to intervene in a supreme court hearing in the car finance commission scandal that could reduce the £30bn-plus compensation bill lenders currently face.
Shares in Lloyds and Close Brothers, two of the biggest providers of motor finance, surged on Tuesday after the Treasury submitted an application to the court arguing it should be able to contribute evidence in a case that could “cause considerable economic harm” and make car loans harder to get and more expensive.
